You left out a lot of other factors: - Europe’s population is declining or stagnant, and is aging more quickly than the US’s. Meaning a smaller portion of a declining population can contribute to the economy. - Europe’s economic relationship with Russia, a country with whom it is currently fighting an economic war. When European economies need petrochemicals, they currently have to pay through the nose, while much of that money goes to… the US. - Europe’s geography is good, but not quite as good as the US’s. One major unified river system, no external threats, direct access to two major oceans.
The population demographic issue is something I am very shocked he did not address. Europeans know how to add value to their economies, they just do not know how to have children like East Asia XDXDXD
The population aging issue will affect each and every nation on Earth as we go from high birth rate to low birth rate countries. By the grace of God our technology has given us arguably the biggest change humanity has ever experienced...now, few of us in the developed world have to contend with the horror of watching a child die during peacetime. Before around 1850, people were still losing 50% of all babies under the age of 5. My great Grandma was born in 1890, that's only 3 generations back. It's the greatest revolution ever seen, and eventually the world has to go back to the sorts of populations we had in 1900, for the sake of all of us...by tbe way, it does mean we have to have some babies just not as many as in the past. I've had 3 so done my part
How many migrants does Europe invite in each year (sorry, they are called refugees now)? I thought for sure that was the deciding factor to invite them in, and not compassion! They currently have to pay through the nose because the entire system was reliant on Russia! Knowing what a wild card russia could be and that they certainly would turn the taps off to use as political leverage, no contingency plan appeared to be developed. Once new systems are in place to get NG from the middle east, the prices should stabilize! The US has no external threats? Did you realize that planes are able to cross the world in less than a day? ICBM missiles in an hour or 2? We may not have threats on our doorstep (ahem, Cuba) quite like Europe has had, but its a small world after all! We dont sink a heafty portion of our GDP into defence spending ONLY to make the military-industrial complex rich! We arguable have mORE external threats due to our 'overbearing' presence in the world ( that helps out our allies immensely)!
Being born in the EU, the USA , or AU means we've won the birth lottery. Our lives are so drastically better than the average human it's hard to fathom. Being in the top 1% is pretty sweet. (making $34k a year puts you in the top 1% globally)
I'm glad to see this comment. People acknowledge privilege as a concept, but rarely discuss it in the context of international privilege. Globally, Americans/Euros/Aussies are the privileged upper class.
The only problem is how does that translate if you live in those countries. The amount you make is relative to where you live. Sure $34k a year might sound like a lot in the world standard but if you live in the US and 80%-90% of your take home pay is used to just live then it still isn't a great living situation. There was a report by lending club that states 60% of Americans live paycheck to paycheck which means they only make enough to just survive. God forbid if these people have an unexpected medical cost then they may end up in debt. In the US medical costs are extremely high. According to Ramsey Soultions, 77% of Americas are in debt. So $34k in the US still means you are poor.
@@tamwilfred , Here's something I did once to see how f***ed some are in different places: 1. Get the average house price for a given country. 2. Get the average salary in the same country. 3. Divide the average house price by 50% of the average income. 4. Say you start working at 18 or 21. So add that number you just found to 18 or 21. That final number is a ball park estimate of how old you'll be before you buy a house in that country. You'd be surprised who is on the top and bottom of that list.
I believe Germany could really be ahead in a few industries if they relaxed their bureaucracy and heavy taxation system. German companies have started to leave the country and moved to Switzerland, Austria, Sweden, Denmark, etc. The irony is that at least 2 of the countries I've mentioned have better social programs than Germany BUT their taxation laws are relaxed for start ups and new companies so they can grow before they can be a real contribution to the economy. Germany basically encourages companies to leave and demotivates new smaller businesses.
germany is such a joke of a nation when it comes to create technology In the list of top ten biggest tech companies of the world, there are six american companies but not a single german company I work as a software engineer In the list of top ten biggest software companies, there are 9 us companies but not a single geman company gemany is an embarasment of a nation when it comes to creating tech in the past few decades
@@larrybuchannan186 I wouldn't entirely agree with you. There are large software companies, like SAP, Siemens and a few unicorns worth billions like Celonis. However I believe this could be very different, they could have way more companies if the market, together with regulations, in Germany would allow it. Lemme explain what I mean by that. Germany has a culture of being anti-innovation and anti-modernisation. Has nothing to do with what a company can do as a service or tech product but if Germans and German companies are willing to use it. For example, at VW you still have machines programmed in a language nobody knows from the 70s-80s just because Germans aren't willing to spend a few hundreds to modernize their systems. That is one example that can be easily extrapolated to different areas. I still remember having to work with a company that had the opportunity of launching generative AI like ChatGPT today. Unfortunately the boss said "let's wait to see the Americans prove the concept and we'll work on it later". That's the problem at hand, in the whole country.
@@craigobrien781 stop repeating this puritanical sentence. Germany is nowhere as strong as it once was. Germans won't wake up from their delusions, just as Brits refuse to.
@@nigstar1239yes many people here don't realize that the government failed in economical development because they failures that were made had no short lasting impact but a long lasting impact which starts to be noticeable after a few years. Now they blame the CDU for the failures because we start to notice it's impacts but WAY to less people understand what our current government is doing. The people here are crazy like in many other countries but the difference is the government is MORE crazy.
Europ is not The head leader for 2 reasons. 1) we're ununified. Europe is not one nation. And while that comes with advantages, it also comes with drawbacks that mainly express themselves as economic inefficiencies. Thats why the EU is so important for Europe. 2) We're holding back. Europe is at the forefront of living standarts, worker protection and nature protection. All these things come at the cost of economic output.
It's bad when the companies lose to its competitors in Asia US due to the regulations and bad laws and Germany and France are good examples of that If your economies don't generate enough money the whole union cracked down Just look at the protests in Germany and france
1. Europe and the European Union are not the same thing. This channel had a chronic tendency to use them interchangeably. 2. The EU is relatively poor in natural resources (and always has been). 3. Europe has a lot of medium-sized market leaders in very specific areas. The German Mittelstand is the most extreme example of this, but it's something you find across Central, Northern and some of Western Europe. 4. EU countries prioritise differently to the US. Workers' protections, health insurance, fair wages, work-life balance, environmental protection etc. are much more important than in the US where, after decades of union-busting and deregulation, workers are seen more as a commodity (relatively speaking, in a comparison between developed democracies and ignoring the absolute travesty of a workers' rights situation you find in developing authoritarian countries e.g. 996 or similar "working cultures").
It also means that, in Europe, due to strong worker’s rights, you cannot easily fire someone who does not do anything. Also, you can’t change a whole system with a better one (replacing taxis with much better UBERs for example) due to these same worker’s rights.
The most obvious factor is the sheer difference in size of 'addressable market' - Europe with its many languages, cultures and legal systems is far more difficult to address all at once in comparison to the US or China.
This is the more realistic perspective. I'd also add, though I know many Americans would disagree (despite not living outside North America to see for themselves), Asian countries are currently more concerned with social stability than the most Western nations are. And it shows. Having lived in North America, Europe, and Asia, I have to say North America showed the most levels of tensions and hate towards each other.
This is easy to see within the EU, lots of mid-size companies in many countries never really venture outside of their local markets. German companies rarely go outside the German speaking countries, Nordic countries stay within the Nordics for the most part, French companies are rarely seen outside France, Switzerland and Spain, and so on and so forth. If they're strapping themselves so much there's no chance for them to grow to become global power players.
@@somjrgebnyou need to take into account how culturally homogenous each country is. I think the world will find that the US is surprisingly resilient, relative to the amount of cultural difference it's working through, as it becomes more globalized and unified
@@drchickensalad I'm not sure if you're looking at homogeneity in a country as a good thing or a bad thing. Arguing for or against homogeneity is a debate on multiculturalism I think, which isn't necessarily what I was aiming at. But you could argue it plays a part in a nation's social stability. In terms of homogeneity, if we are thinking regionally, North America is extremely homogeneous across its landmass compared to the rest of the world. It's countries have simply not had nearly enough time to develop their regional cultures. What the world hasn't got an answer on yet is whether you can import many different cultures and "work them out." I'm sure the US will show us that in time. I hope the US is resilient, as there are plenty of nice people there. But I wouldn't say the world is paying as much attention as they used to considering the world is moving more towards a regional-based order than an international-based order. Note: These comments are by someone who was born and raised in the US and left in my late 20s.
@L: Good point. Here in California, we have “special blend” gas (and milk) which means Californians have to pay more for gas and milk compared to the rest of the country. I can now just imagine this for ALL goods in EVERY state to match Europe. Maybe that allows Americans to romanticize Europe’s small scale of the food economy, which allows small companies to sell goods, while the USA has chosen cheap processed preservative food instead.
Inflation hits people a lot harder than a crashing stock or housing market as it directly affects people's cost of living that people immediately feel the impact of. It's not surprising negative market sentiment is so high now. We really need help to survive in this Economy. The ETF/Equity market keeps swinging.
When the news is the worst and investor confidence is at its lowest, indices routinely turn from a bear market to a bull market. This illustrates how quickly the market's direction may change.
@@mcginnnavraj4201 You will need a strong FA to help you through the current market turmoil. I've been talking to an advisor for a while now, mostly because I lack the knowledge and energy to deal with these ongoing market conditions. I made more than $220K during this slump, demonstrating that there are more aspects of the market than the average individual is aware of. Having an investing counselor is now the best line of action, especially for those who are close to retiring.
I've been consulting with SALVATORE FORTUNATO SOFIA, a financial consultant whom I learned about and got in touch with thanks to a Kiyosaki radio interview she was featured on. Since then, she has served as the point of entry and departure for the equities/stocks we have emphasised. A search using her name on the internet can be done if tracking is necessary.
@@hannahdonald9071 She appears to be a true authority in her profession. I looked her up online and found her website, which I browsed and went through to learn more about her credentials, academic background, and career. She owes me a fiduciary duty to act in my best interests. I set up an appointment to use her services.
I think languages and legal systems will always be one of most difficult things to navigate in Europe, and is one of the largest disadvantages Europe has over the US. I’m trilingual, with English being my 3rd language, simply because I was forced to study 3 languages by law, as a necessity to function in an international world. I think Americans often underestimate just how difficult and expensive these things can be to navigate for a company. There are over 100 native European languages (probably closer to 150), and between 40% and 50% of Europeans are monolinguals, so it’s not as simple as “just” speaking English. And not all multilingual Europeans speak English either.
I think the lack of tech companies is the biggest factor. Tech is the easiest way to sell a global product in today's world. Video games, productivity software, apps, cellphones, routers, antennas. Europe has stalled in tech behind America and Asia.
@@One.Zero.One101 I rather think that the big tech companies simply moved to the USA because of a better environment, etc. While everyone is producing in Asia because it's cheap. Few European countries can supply the needs big companies need to grow and stay competitive, so most of the big shots have their headquarters in the USA, produce in Asia, and Europe is simply some important customer, etc. but not the most important place to be. At least, that's what I think based on personal experience, etc. Some members of my fam work in the IT sector and their companies send them over to the USA once or twice a year to get into contact with the headquarters and learn the newest stuff, etc.
@@jinpachibobochan3532some do move but most tech companies in the US were starred here, especially thanks to WW2 involved setting up tech centers like silicon Valley. Europe really fell behind during the digital age and were slow to change while the US actively encouraged growth. Some of the tech companies they do have aren't as innovative or nearly as large, which is kind of weird when you look at how highly educated Europe is on average.
Hello, I live in Germany. Generally I am pessimistic about the future of the European Union over the long term, precisely because of the one aspect not mentioned in the video: aging and slowly dwindling population. There is also a lot of ideological decision making both in Germany and in the European Parliament, while the Americans are a bit more pragmatic in my view. One example of this is Germany phasing out nuclear power this year before phasing out coal power in the 2030s. In the interim, at times of peak electricity demand, Germany will fire up more coal plants and import nuclear power from France, which obviously will increase the output of CO2 at a time when it should be going drastically down. The last two nuclear power plants to be taken off the grid this year were not even at the end of their useful life. If this is not plainly stupid, I don't know what is.
America is anything but pragmatic my friend. Nuclear is feared and people are trying to shut it down. Ideologies are a mess and no one is able to compromise on anything. If the global order is to collapse, America would be hit the hardest, and while European nations may unify along political and economic ties that have kept the nations together for centuries, America will devolve into utter chaos.
Why did the population allow this? It doesn’t even make sense. If the population didn’t allow and they did it anyway, why don’t y’all protest like the French?
To be fair, the three nuclear power plants wont have made any difference and economically it probably made sense to shut them down. Here in Niedersachsen the power plant produced energy that could have been produced by wind turbines. So it makes sense to shut the power plant down and use the cheaper wind energy. We need a lot of reforms, but people don't want anything to change. That is the issue. We probably should work more not less, or we need huge amounts of productive Immigrants, sadly they actually don't want to come and usually go back or somewhere else (can't blame them). But Germany is still a good place, if you have a good education you shouldn't worry too much about this.
You are right, that germany was a bit indecisive with it's electricity policies. But i think it is moving in a good direction right now. The thing with the nuclear power was a decision from before the climate change debate became so all encompassing and you are right that they would have been useful right now, but i would like for you to look at the reasons as well. It was a decision made after the meltdown in Fukushima where germany decided that humans are not to be trusted with powerplants that can ruin large parts of the continent if something goes wrong and the winds are by chance right. And of course the waste problem although that can be scaled down with Transatomic Power's molten salt reactors. And i think it makes sense, especially at times when tens of frances nuclear powerplants were down because of safety concerns. On the other hand i concure with your assesment of the coal plants, having to reactivate them is very painfull. But that will be sollved depending on the decisions made by the government in the next few years. Even the conservative Bavaria has actual writen laws forcing it to swap to renewable energy till 2040 despite its resistance in the last few years. So things are moving and i'm looking forward to see it happening. The population issue is definitly a problem but i think it will solve itself once the ocean rises by 1-2 meters as grim as that sounds. There will be alot of skilled people searching for a new place to stay. And if Europe finally gets it's things together and stopped panicking it there will be enough people. And if that thank god doesn't happen, we'll have to say goodbye to a lot of social ammeneties like pensions till the population stagnates or increases again. I don't believe in a endlese decline. The government can take mesures to increase birthrates and they will have to take them. For example you could make having children have economic advantages that actually offput the costs, but that is just kmy humble opinion. Sry about the rant
I think there are a lot of things you missed and one of them( or maybe 2) is that Europe was the major battle field during ww1 and ww2, and the Eastern is lagging behind the Western even if they have a lot of growth in the past 2 decades…. I think it’s interesting if you made a video about the Eastern Europe vs Western Europe, greetings from Romania 🇷🇴
Well Eastern Europe lagging behind the West has a lot to do with the Soviet Union. Since the fall of the Soviet Union and joining the EU, the former Warsaw Pact countries have had high growth rates. The GDP/capita (not the be-all) is better than Russia itself, right?
Europe's WWII experience was, at one point, a positive. In the 1970s and 1980s its industrial infrastructure was, on average, younger than that of the US, because in many countries (e.g. Germany) it was largely entirely replaced after WWII. One thing to note is that a lot of Europe has a very high standard of living, notwithstanding nominal per capita GDP below that of the US. The US is a very unequal society, so averages hide a lot of suffering by those in, say, the lowest 25% of society. Social mobility is much higher in at least some European countries. If I had to choose to be born into the lowest 10% of society, I'd far rather be born in, say, Scandinavia rather than the US. In Scandinavia you're far more likely to get the opportunity to move up in society than in the US.
Much of the advantage of the US is a historical advantage from having been one of the only countries in the world to emerge stronger because WWII happened instead of being weakened or devastated by it. In that chart that showed working hours, notice how Germans were working almost 2,500 hours per year in 1950? It's very labor-intensive to reconstruct your entire country, especially with half of it being colonized by the Soviets for nearly 50 years. :P The Industrial Revolution happened in Europe first, but the Post-Industrial Revolution happened in America first. While Europe was still re-industrializing after the devastation of war, the US was already in the process of transitioning to globalization and outsourcing by the 1970s, moving factory work overseas. The US had an "early mover" advantage in the Post-Industrial Age that has arguably been slowly chipped away over time, but which is still holding strong. The fact that Europe industrialized first didn't matter in the end for two reasons: 1) Europe wrecked itself and lost decades just getting back to par, and 2) the world isn't living in the Industrial Age anymore, so it doesn't really matter who Industrialized first. Much like how it no longer matters who invented fire first because fire isn't that special anymore. :P
I mean former “Eastern” countries are beginning to overtake certain “Western” countries. For example Czechia and Slovenia are now more developed than places like Portugal or Greece.
What wasn't mentioned in this video is the distribution of income and privatisation. I'm curious how like the lower 80% income earners of both regions compare. Also the US has a much higher level of privatisation than the EU, which usually leads to higher nominal output but decreases the qualitiy of services for most people but the wealthiest. Therefore i would be very interested in a video that compares the standard of living in the EU (which differs in itself vastly from country to country adimittedly) to USA for the average citizen including access to services like education, healthcare ec. It would also be interesting how the wages of the lower 80% have developed over time in each region.We shouldn't forget as well that the EU has grown a lot over the last 20 years in terms of new member states and new countries often had a very low standard of living to begin with but are growing rapidly since they joined.
Not even just country-to-country, but regions within countries. Admittedly, I haven't seen recent statistics, but last I heard, the Eastern part of Germany, to this day, 30 years after Reunification, still lags behind the West, economically. There is a measurable difference that still endures.
i´m from Portugal and minimun wage is 760 euros a month average is 1331 euros, quality of life and political views change from regions,most live on the coast of country, we are a country that suffers from brain drain since the 80s?, most emigrate to france,uk,luxembourg (one third of the country is already portuguese or with portuguese descendency),switzerland,usa (i think mostly boston region idk), is estimated that 5 million portuguese live abroad, in recent years life is becoming harder especially because of a housing crisis because of golden visas,digital nomads,retires and migrants especially brazillians and indians, the goverment only cares about tourism and helping companies keep salaries low
I'm sorry But this is pure copium. The EU has double the population of the United States. No matter how you slice it the average American is better off than your average European.
Morgan Exactly. Sad to say, all it takes is one member to tank to bring it all down such as Greece. Love the country and its people, but it really hurt the Union with its economic collapse. I don't think North Dakota has the power.
Another point to show EU's priorities, is the iPhone charging cable. EU has put pressure on apple to use USB-C charging on newer phones, which is a gain for the costumer and a loss for the company. I'm sure there are other similar examples that show EU's focus on customers protection as well as workers protection.
They just approved a new law that demands all batteries in consumer devices to be easily replaceable by the user without particular tools. This is done both to address obsolescence due to dying battery and also for recycling batteries. That's pretty cool i think
@@qweds3127 why? With ac appliances it happens also in the usa an the rest of the world, every country has its V and Hz and a specific plug for AC for example. Its basically he same but with DC. On the battery is just a recycling thing, consumers must be able to recycle and so be it
@@tutatis96 @tutatis96 I was replying to the OP on the charger thing . I find your post interesting although I disagree with you. Can you give me an example in the USA where govt. has forced a consumer device to stick to a utility based law like that ? I am sure laws like that will be illegal in the US. Standardizing mobile batteries is not comparable to standardizing V and Hz. Standardizing V and Hz standardizes electricity generation and distribution which are massive systems installed to work for decades for the entire nation. Think about all power plants, distribution lines, transformers in an entire country. Which is not the same as standardizing battery which just works on your own mobile. Don't mobile repair shops/ company service centers replace batteries anyways if it stops working ? Then how does easy replacement by end user make it more environment friendly ? On the obsolence front , planned obsolesce is a complex topic but forcing companies to change how they design mobile phones is not a good solution imo.
I dont really think thats important at all. I use an iphone in the eu, getting an apple charger doesn't really change anything for me. Is it a bit more expensive? sure. How much? basically a kebab and coffee. That's a meaningless law that saves the customer 10€ in 2 years maybe, at the same time disrupting the production chain of a company that might increase in the price of the phone. That law helps nobody.
really great that you mentioned a previous video that covered the same or similar topics while crediting them, as a new-ish viewer I wanted to tell you I admire that practice a lot
Heyka, I missed this analysis of the impact of the type of taxation on the tendencies to integrate firms. In Europe, VAT charged and deducted at each stage of the supply chain is size-neutral. In the US, state sales taxes favor vertical integration of the supply chain within a single corporation. Therefore, companies in the EU can remain optimally small, while in the US they must integrate into one inefficient global corporation if they want to stay on the market. If Europe's problem is too-small companies, the US's problem is too-big-to-fail corporations :)
THIS. While the gigasize might help them compete on a global market in the most aggressive sectors (automoto, arms, CE), they also outgrow its own country and gain disproportionate, harmful control over an average US citizen.
Japanese and Korean companies have a far larger tendency to be vertically integrated than American. American companies actually look at core competencies. It's just that Americans tend towards "more". It is large companies that do some vertical integration, like Amazon doing a lot of it's own deliveries. Smaller companies outsource components and expertise. Sometimes a company will grow and grow, buying up other companies and sometimes branching out - the inefficient unwieldiness you talk about. That ends up being a mess and consultants/new managers have a long history of selling off parts that are not in "core competencies".
@@Johann_Gambolputty_of_Ulm- Europe completely missed the tech boat because they couldn't create large companies that were competitive. Now they are hopelessly behind. Only Europeans would spin that as a good thing, lol. Jesus they have become arrogant.
Large companies are usually more efficient than a series or small companies doing the same work because of elimination of redundant steps and labor. To wit: the entire thesis of the video is that the US is more productive than Europe because it tends to have more large companies.
Thanks for the shout-out! :) Could it be thought that you are refering to this video about Europe's Economic Decline (ua-cam.com/video/ViM_GHOK1yU/v-deo.html) as opposed to the one on Europe's Deindustrialization?
I just did a rough calculation of what I work in a 40 hr week for the period of a year (not including overtime) - pto - paid holidays. It works out to 1840 hrs a year. For reference I work on the east coast of the USA as a salaried employee.
I think the lack of tech companies is the biggest factor. Tech is the easiest way to sell a global product in today's world. Video games, productivity software, apps, cellphones, routers, antennas. Europe has stalled in tech behind America and Asia. 📌
You are the fool in the world. Most of the inventions are come from europe and America not Asia. Asia is nothing infront of europe. Europe didn't have better market than America that's the reason. Europe is best in quality engineering, production, invention Research and development than America ans Asia.
Another thing to consider regarding this topic is: who makes Europe. Because, when you looked at Europe's big companies VS the US and Japan... You considered Europe as whole. But in this includes countries such as Bulgaria or Greece, who struggle economically (even if they are doing better and better). These consider thus have no major companies to rely on, yet they make up a part of the EU ...
I always kind of hate it when people compare the EU and US because they do tend to cherry pick things. They focus on the wealthiest and most successful parts of the EU and tend to discount less successful and less free parts of the EU. Like half of the EU dont recognize or allow gay marriage but people will focus on LGBTQ+ rights in places like the Netherlands and when comparing things like incomes they'll focus on really wealthy places like Luxembourg and Germany but will ignore most of Eastern Europe and the Balkans. The US has similar extremes: I live in a medium sized city in a medium sized county in Washington state and for the same price of a 100 year old 1 bedroom house here you can get a nearly new 3-4 bedroom house in most parts of the US and that same amount wouldnt get you a shack in large parts of California.
@@arthas640thank you yes! EU is a set of countries that independently are small and weak, and not as wealthy. The US is just one country. As a gay guy, thank the Lord I'm sorta safe in any state vs EU having literally countries I'd have to avoid. Also have they seen the population and wealth of just California? I'm 28, earn $115k+, no debt, and over $100k net worth. I can't even get a tiny ugly 1 bed house here in any coastal county! Of course if I'd move to Kansas I'd have a mansion.
@@arthas640 The point about housing prices is roughly the same in Europe. Getting a tiny apartment in London would mean you could be close to a King/Queen in the poorest countries of the EU.
@@djm2189 I don’t think that is really true. I can’t think of a single EU country where you would be unsafe for being gay. The worst is Hungary but I would say that seems only as bad as some areas of the southern and midwestern USA. Being trans is another matter. Even the Catholic Church seems more chill about gay people than the US evangelicals. To put it in comparison I’d struggle to feel safe in any American state given what I have heard about your police forces and the fact that so many people carry fire arms for self defence. I come from a rural background in the UK so I a have seen plenty of guns but never with the intention to be used to shoot people only animals.
@@Jay_Johnson There is no point assuming things about another country based on things you've heard on the news. I've been to a few places in the EU and the US. Honestly most folks are just trying to live their lives and earn a living. The "bad people" you hear about make up almost nothing compared to the whole population. The media is the enemy of the people.
12:25 It really is a small world. Just yesterday I saw a Visual Capitalist graphic that showed the number of working hours by country. It brought up some interesting points to think about in its sub data. For example, in Japan there are probably a lot of unclocked hours because of culture, despite recent efforts to change that. And in Germany there are now strict rules about how long the work day can be, with a "long" day being required to come out of the end of the week.
@@Clifford_Banes It could also be frequency illusion. The Visual Capitalist just published the chart 2 days ago, and it's a topic I pay a lot of attention to.
It's also not just the hours but what you do with them. Japan has a highly presentist work culture, so even though you might be at work late you won't necessarily be doing anything productive, a lot of hours are filled by inefficient processes or pointless make work, or even no work at all, it's not uncommon for Japanese employees to play games or watch videos while at work waiting for the boss to leave. Contrast that with the US, which still works long hours but has a far more output driven work culture, so those long hours are filled with mostly productive tasks.
People with ths argument always magically forget that for example people in the Netherlands will soon have to work till 69. That's what you get when you bring in unlimited clowns, give them pension, but they have never paid a share for their pension, so they are stealing.. And because they are stealing i have to work till i die. Isn't socialism so cool!
Europe should reduce its reliance on Chinese manufacturing, as otherwise, it might eventually become dependent on China and risk becoming a Chinese vassal."
One interesting trend I notice is that some corporations in Europe use English as their lingua franca to attract a large potential talent pool and make it more competitive.
after the globalisation lead by the british, english became the language of business. If you want to expand internationally or even beyond a certain size then you need to have at least a reasonable grasp of it
@thesherbet I don't mean it in the sense of knowing English so you can interact with your business associates in distant lands. I think that is the usual interpretation of the concept. What I mean is a country like the Netherlands using English as the lingua franca of intra company communication so that they can attract workers from other EU nations and even the wider world to work in their companies in places like Amsterdam or Utrecht. This makes sense for companies competing on a global scale.
@@stevedavenport1202this is not true in the slightest. If they speak english that means they do business internationally or have some kind of responsibility internationally. Otherwise, it’s dutch all the way.
@@stevedavenport1202 companies who do this are those who have a lot of foreigners working in them. otherwise it's counterproductive, as functioning in your native language is more efficient.
Sweden alone produced more international brands and global corporations than most US states, not to mention France, Germany, the UK, Netherlands, etc. Europe is doing just fine when it comes to every single metric I care about. What you call stagnant I call stable, what soon will become circular. The only stagnation I can see is happening inside the heads of mainstream economists, they still think in obsolete ideas and absolutely refuse to change their rigid thinking.
@sergeymelkumov5940 I haven't heard of 3/4 of those (plus Spotify is becoming heavily Americanized) whereas the US has a hundred companies I could name (I'm a Russian)
@@sulkel if you haven´t heard of those companies maybe you should not comment on global economy and expand your knowledge base first. P.S. funny thing, I only listed those companies that actually produce consumer products. there are also tons that are industry specific and mostly known for B2B products that understandably normal people might not know about. since you are Russian, might have heard about Tele2 and Saab? ) Paradox entertainment and Dice if you are a gamer? not bad for a country with population less than state of Ohio (name same amount of companies that came from state of Ohio) or city of Moscow.
Overregulation and lack of innovation? It seems like the EU (from an American perspective so take with significant salt) always wants to regulate rather than allow innovation. I read somewhere that America is innovation without regulation, Europe is regulation without innovation, and Asia is somewhere in the middle of that spectrum.
Well in europe we have a lot of right's concerning working and work/life balance so innovations that are related to work have it much harder to be implemented quickly
@@NilsDeutsch-w3n Europe is lagging behind the US in innovation in general though. Look at tons of recent inventions and you'll find that even when they're invented in Europe it's the Americans putting them to use first. Europe had tons of electrical engineers but ended up buying a lot of American electrical product and services, Europe developed a lot of early computers but ended up buying American electronics, Europe was making cars and trains and tractors before the US but wound up importing a ton of American automobiles, Europe developed supermarkets and malls around the same times as the US but the US was opening international branches while European supermarkets and malls were still only within Europe. Europe and America operate in opposite ways sometimes. Europe innovates socially and evolves socially much faster, doing things like gay rights sooner and workers rights sooner (at least withing Europe, their colonies not so much) but the US innovates faster technologically. Like i work construction and I see even higher income areas in Europe that are still using a lot of more dated techniques in European buildings that make them look like an American equivalent from 30 years ago, even small stuff like switched outlets for lamps which was common in the US until the 80s and 90s when lamps went out of fashion but are still common in parts of Europe today even in newer buildings.
I feel like you have already done this, but if not, then a video on working hours, worker productivity, investment in worker education and training, investment in research and development per capita among various countries around the world would be very helpful.
Singapore and China seem like hugely different systems to me. True, both are authoritarian, but it seems like due to Singapore's small size, the people are able to hold their leaders at least somewhat accountable. Which in China would be much more difficult due to the vast size of China.
There's a lot about Europe I admire, even though I'd never live anywhere outside of the USA. But geography/natural resources and raw population/productivity is really at the heart of it. Anything else you list rests on top of those. It's the sheer scale in the U.S. that gets us to the top, not necessarily that we're smarter or harder working than anyone else. Only China and India, the billion person club, have more people. A professor of mine once called it Western prosperity on an Eastern scale, and included Japan in that. I think it's pretty accurate.
I'm sorry to break it to you, but your theory is deeply flawed and just plain wrong. Why is that? The EU has a much bigger population than the USA (it has 447 million people, while the USA has 332 million). Europe as a whole has more than double the USA population (748 million).
Europe's population got devasted in WWI & WWII. A lot of the continental industry was smashed. The USSR also wrecked a lot of the remaining industry in the Eastern European countries they took over. Post WWII Europe had to rebuild while the US simply built. That's several decades of advantage right there, setting supply chains, name recognition, creating immigration of the educated, building a capital advantage. Being one large country certainly helped that growth, but not being wrecked was probably a bigger factor.
@@recoil53 Fair enough but we've been the richest nation since the late 1880s. The only thing that changed in 1945 was our military commitments. We didn't need Europe to get wrecked to be on top.
@@kilpatrickkirksimmons5016 Well, building a nation on highly productive vast swathes of land using slave labour would easily net more profits than a bunch of colonial powers having to fight off each other as well as subduing resistance in their colonies. I'd say that with or without the world wars, the US was always going to have a significant advantage over Europe both in terms of a unified administration as well as scale.
@@bazingacurta2567Leaving aside the fallacy of treating the EU as anything like as coherent as the U.S., you'll note I listed other factors besides population. It's the scale of the prosperity which was my point, not just number of taxpayers.
I was going to say they probably care more about their people than the US does. Especially since there seems to be a bunch of companies in the states just going back to child labor. 😩 As a US citizen, I'm very jealous of their work-life balance and how they're treated.
@@yuki-sakurakawa japan sounds like output all else work-life balance maxed out to work. i would rather choose EU comfyness tho being more comfy has a big value on its own in my opinion that doesnt show on gdp ppp. non monetery personal value
Basically when it comes to wealth and the strength of the Economy. The us is able to do much better … when it comes to overall quality of life. The Europe majorly beats them.
@@daxtynminn3415 That's one thing that pisses me off when people compare Europe to America: they tend to cherry pick what parts of Europe they want to use. Like even things like social attitudes like views on LGBT: sure there are plenty of more conservative parts of the US that tend to get the attention but there are countries in the EU that are worse then the worst US states like Poland who still have LGBT free areas but people will compare the most liberal parts of Europe as an example. Same story with race, people will compare the American south to the Netherlands and ignore things like the fact that the US has minorities in high positions like even president while most European states are pretty uniformly white and the reason they never got as many brown people as the US was because they excluded immigration by non-whites even crafting many laws that made it nearly impossible for non-whites to move from the colonies while allowing in white immigrants even if they were born in the same city.
I think there is a possibility that Europe is a more mature economy. You see a lot of Americans questioning their current economic priorities and slowly losing industries to developing countries with lower wages. It's quite possible that the USA will eventually go the same way...
This... definitely paints an overly-rosy picture of the future of Europe. It completely ignores demographics for starters. Also, I'm pretty sure the decline of globalization is disastrous for the European economy, since France and Germany are export heavy economies. Meanwhile, the USA would actually benefit, since it's import heavy.
Thats why Europe is importing northern Africa and India into its conglomeration; to diffuse the population 'bom.b'. All those migrants are displacing many Europeans, driving the costs of living up, suppressing Europeans natural inclination to have families, and further necessitate the need to invite more 'refugees' in.
I'm quite interested on why you didn't mention red tape and over-regulation that effectively can be the difference between life and death for businesses (and has innovation dead in the water here in Australia). For the little I know about the USA and the EU, the latter seems way more interested in regulating next to everything while the US seems to give businesses much more room to go bananas and reap the rewards.
@@Spabsa no. A lot of companies start outside USA, then move to USA to exploit the system, cause your democracy is ran by companies, not the people. AKA if you're rich, move to USA to get richer. USA has very high wealth disparity.
Funny how some of the most regulated countries in the Europe, the Nordic countries, seem to have more big businesses, more startups and millionaires per capita.
In many ways I think that failure is the specialty Americans know and understand to an art, we how to use it to our advantages. A lot of countries fear failure, given that failure typically means it’s the end and chances are there is no retries. There are plenty of countries that have learned to take their chances, but a good chunk are withholding themselves from making investments into projects they cannot afford to lose. Meanwhile, failure to Americans is part of the learning process, and to us we might not want to fail, but what we hate more is an opportunity to slip by. So culturally, or at least it used to be, it was more important to encourage others to try taking those chances. And if you found yourself down, if you at least had a good community, they’d come to help support you to get back up and to try again. Over time, we’ve learned there is value in “failing,” if a person actually has the intelligence to study then they’d take advantage of the mistakes made and find ways to correct it. So through failure, we learn how to succeed. Taking taking risks might means there’s a chance for loses, but there’s also that chance to gain too. Best way to sum it up is the infamous quote of Edison “I did not fail, I just found 1000 ways that won’t work.”
As an American, I constantly see devastating problems on the horizon for us. But then I look around the world and many countries are facing the same problems today.
4:37 There's something to be said about population lagging behind the industrial growth when it moves that fast. People generally just don't adapt to change that well, especially as they age. There will be a lack of experience, as well as established education systems in place as well as cultural changes that need to happen. While the best of South Korea and China can rival their western counter-parts, between that and bottom there can be a wide gap. Though the lack of experience can be considered a good thing as here in the USA we often have old executives who stifle innovation because they use "that's just the way we've always done it" as excuse. A green executive who doesn't have an established set of "ways he's always done it" and in fact is still learning might be a blessing.
I think the phenomenom can be partialy explained by the diffrent priorities that europeans have in contrast to the USA. A european that has a job that pays him enough money to live a normal life without big sacrifices would mostly don't take a new job that pays 100% more but you gotta no life it or its something thats not fun. So we priorities a happy life over a financially sucessfull life.
Often, self-inflicted medical bills. Too much accumulated stress, not enough pto, too much unhealthy food, and not enough exercise due to poor worklife balance may be the cause of many medical bills.
@@abdiganiaden salty or content? 🤭 So far its people saying "im ok with how it is because i dont have to pay out of my nose for healthcare" 🤣 You want to say "im fine with paying for healthcare because it makes me proud that my country tr scores hihher in comparison"? If not, isnt it you who is salty?
@@TheGahta I’m young and healthy and have health insurance thru work. You guys always talk about exceptions like it’s norm. Plus our disposable income is greater than your entire paychecks so keep your long wait times basic health care. Most Innovation comes from US anyway including medicine.
Notably, productivity is also based on how wealthy a country is. A cashier working in the Bay Area is somehow a lot more productive than a cashier working in a developing country
Exactly. Im amazed that such a simple concept is still lost in translation. Adam Smith: Wealth of Nations. When nation produce more, it consumes more. Natural resources are not wealth creating, production is. Many people dont underdstand this and think that Africa is rich because it has tons of resources, lol :D
@@DivinesLegacy Nobody. Im saying tons of people on the internet think Africa is poor because everybody is stealing resources. They think, if they got paid for it they would be as rich as the west. Doesnt work like that. You have to produce products to be rich.
The US is for sure way ahead in terms of tech industry, salaries and big companies, that's not even debatable, and Europe is about to face many challenges, but still the US is lagging behing in many other aspects: Health Care System in EU > US Safety in EU > US Work-Life Balance EU > US Public Transportation EU > US $ Education EU < US
quality of life for low income people. Being poor in USA really sucks. Also homelessness and drug addiction is a huge american problem which must be addressed.
The safety thing is very region-specific, both within the EU and within the US. There are states in the US with a lower murder rate than some European countries; the state with the highest murder rate is almost 10x that of the state with the lowest murder rate, within the US. There are states where the rate of gun ownership is less than 10% and there are states where it approaches 50%. The differences are impossible to exaggerate. There's also a war on in Eastern Europe, so...there's that. Puts the concept of "safety" in a whole different mental frame. Consider the example of the Polish people who were killed when a Ukrainian air defense missile went awry and accidentally landed on top of them. Nobody in America died from being struck by a foreign missile this year.
@@larrybuchannan186 Well according to QS from the top 10, 6 are European. And of course some of the best Universities in the world are in the US, but how many people have acess to those universities?, how much do they cost?. Europe is almost Free, you don't have to get a student loan which is one of the worst crisis of the US in the last years.
@@unbreakable0327 Remember, the US has a lot of states tho. For example, in the New England states and the North Western states saftey is on the same level as Europe. Also, community college is free or affordable in those parts of the US. But if we are generalizing the whole USA and Europe than I guess your right.
I do think Europe and more specifically EU has work to do when it comes to unified economic systems, investing and such. But really the issue is that Europe is not single country. EU is quite successful both politically and economically, but we still work as co-operation of individual nations, with varying economic and political systems. I think political systems will always differ, but there could be some work to be done to standardize some economic aspects across the union. Ultimately problem is two world wars, and fact that Europe is just not a single country. Honestly there's really nothing too complicated about it. Well it actually is, but if we take broad overview it is. US on other is massive country with a lot of people in extremely secure and advantageous geographic area. Militarily and economically. With a ton of natural resources to boot. And it escaped destruction of world wars, loaned a lot of money in process to Europe and overall enjoyed position as world's sole superpower thus being able to leverage that for advantageous dealings. US basically has won lottery one after another since they have been a country.
Won the lottery since its foundation?.. You’re forgetting that the US started out quite poor. Towards the end of the 18th century it had just broken its chains from British colonial rule and was still predominantly an agrarian society. Meanwhile, Western Europe at the time was reaping the benefits of the industrial revolution and the wealth it generated from its colonies overseas.
Doesn't has to catch-up anyone or any country with all sorts of dramas, they are completely ok. Europe has a unique cultural heritage and diverse economies that contribute to its competitive advantage in the global arena. Additionally, it leads in many areas of innovation such as healthcare, renewable energy, and sustainable agriculture thus it's important to recognize that competition should not always be the driving force and that each region should focus on leveraging its strengths while addressing areas of improvement to ensure equitable development and progress. ☝️🙏
There seem to be a lot of videos about Europe is a healthier place to live. These videos describe the universal health care systems, the cities that are set up for healthy walking and cycling, the better diet, more time for important events in life and life itself. I've never been to Europe, but it begs the question as to whether these folks are behind. Europe has also had a long term disadvantage of more expensive energy which has hindered them. I suspect new nukes will be built in the next generation which will essentially nullify that hindrance.
I do have some skepticism about this. I'm not convinced that you can call society "healthy" that isn't replacing itself. Practically every single European nation has sub-replacement levels. By the way the US also has this issue, just to a lesser degree.
Having lived in both, this was my experience: 1. US has a stronger economy. In terms of economic growth, they are very smart. In terms of social stability in growth... um... not so much. 2. Europe has a weaker economy. While they are smart with economics, they have a certain moral against "growth at all costs" like the US does. For this reason, their social dynamic are more stable so far. In my experience even in Eastern Europe, the quality of life was A LOT better than my life in the US (lived in the Mid West and major cities). I agree about the birth rate, though. I think the reason is the quality of life there (compare Gini indexes and life expectancy) has made them less "concerned" with having kids. Aside from South Europe, I don't think the reason for their low birth rate is the same as for the US. One is likely because they are too comfortable, the other likely not comfortable at all (again, compare Gini indexes). TLDR: Both have gaping blind spots. Choose your poison, they are both fatal.
@@rathelmmc3194 Even Bangladesh have a fertility bellow replacement level. This doesn't mean that it is not a problem, it is just a one that most of the developt world has. US is an exeption.
@@frantisekhajek6775 US isn't that much of an exception. Use still has a fertility rate below replacement, aside from their more rural Midwest area trying to push it up (which the US tends to ironically disparage with their politics). I agree, though, this is a general problem around the world. The fact most parts of the world are having this issue for many different reasons, except India, makes me wonder if this is just unavoidable. If not, we need to at least understand why it is happening and address it without throwing useless polarizing politics at it.
Europe is not a country. It will never become one. Its a miracle what this union managed to achieve despite not being a country. Love this place!! We are example what UN should look like, united countries working together to benefit everybody.
The big problem of the EU is it isn't one mega market like the US or China, but several small, medium, and large markets that are sometimes complimentary and sometimes conflict. This creates inefficiency. US, China, and Japan in contrast have large, unified economies that allow businesses to nurture before jumping into the global economy. These matured businesses compete much better on the global stage.
@@strasbourgerelsass1467 I work for a start up and believe me it makes a difference. Many of our sales are done thru phone calls and we are a small team. More than half of the European population doesn't speak English. How are we supposed to know almost 20 languages?
@@avengerulsasuke5814 I work in the advertising / marketing sector and everyone (!) we are working with, can communicate in English or German (where I am). I dont know with which people you are working. 🤷♂️
Great video - this is an issue I’ve read elsewhere and is not really discussed. In Britain we have a particular problem with a lack of business investment as well as being good at starting new companies, but not as good at scaling them up. With many British start ups eventually moving to the USA to be listed to get access to more capital. However, I got frustrated with the definitions. At times you refer to Europe as the EU27, and at other times you refer to Europe with non-EU member states like the UK, Ukraine and Kosovo. I do think it’s important to be specific.
He's from Australia; from his perspective, those of us in the Northern Hemisphere are all just weirdos clinging to the underside of the planet, like barnacles on some vast ship. Who would name one barnacle differently from another?!
The uk fucked themselves with brexit imo, i think the consequences will be more impactfull than they thought. Some of the eu problems are an aging population,high burecracy, different laws and regulations across member estates,some countries are very protective of their own country, germany and france basically ran the eu leaving other member feeling sour and unsure of the future. aggregating the eu into one i think is not good and doesnt give a correct picture, also he interchange between eu,europe an
@@weird-guy Brexit??? M8, the UK has been declining since 2008! Actually, some figures improved over those last years! The problem is not Brexit, but all the political parties in power!
Europe is leading the US in: 1. Quality of life 2. Education 3. Healthcare 4. Family unity 5. Not forcing immoral gender agendas. Thus, the question is, will the US ever catch up?
Quality of life in the US depends on where you live and work and it’s a lot of places in the US that have a better quality of life just like education. US still has some of the best universities in the world and people have built trillion dollar companies that have make a lot of breakthroughs in tech unlike Europe. Not to mention the US is able to defense itself while Europe treats its people well but can’t protect or defend them with a lot of help from the US.
@@David-jp7gw Gdp per capita is indeed higher for the US, but it is skewed due to middle class inequalities. Literacy levels at schools, US score poor (not even in the top 20). Quality of life is significantly lower for the US…
@@strasbourgerelsass1467Europe's biggest export products are cars and car parts and due to lack or innovation, the US and China are overtaking Europe in the automotive industry
@@superjonne7916 Another one who has no clue. Europe's biggest export fields/products are industrial equipment and pharmaceutical products. 🤦♂ However... what kind of car innovations do you mean in the US?
Nobody can become financially successful overnight. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals. you have to contend with inflation, recession, decisions from the Feds and all. I was able to increase my portfolio by $289k in months. You have to seek for help in the right places.
@lloydbernard5847 As an investor, you should be aware that even with the best strategy and resources, some investors would still outperform others. In my case, I needed to consult a market analyst for advice in order to grow my account to almost $1 million, withdraw my profits just before the correction, and start buying again.
@lloydbernard5847 You should be aware as an investor that some investors will still outperform others even with the best strategy and resources. My situation required me to seek advice from a market analyst in order to increase my account balance to almost $1 million, take a profit just before the correction, and begin purchasing once more.
I have "LISA ELLEN SHAW" as my investment advisor. She has a solid reputation in her field and is a true genius when it comes to diversified portfolios, which help portfolios be less vulnerable to market downturns. She may be a name you are already familiar with; a Newsweek piece helped me to do so. She's a Google-able person.
@@lisaollie4594 I searched her up online and checked out her credentials since I was so intrigued. Top-notch! I emailed her to inquire about accepting new clients.
In recent years, I have developed another theory, why the US is having higher growth than Europe. (And it's actually a positive one for European people.) Europeans simply don't have to work as much and as hard for their standard of living. I witnessed this in Switzerland. Despite having a very liberal labor market, with high working hours for a full time job, the working hours on average are constantly decreasing. In fact, many of my friends CHOSE to work part time, because "I have enough money anyways. But I want more time off." Working more for money is only valuable, if it gives you more benefits than "time off" would. My theory is, that the cost of living in Europe is so much lower, that more people can actively chose to make this decision. For one, you can look at the cost of living statistics, that instantly explains a part of it: Europe is about 40% cheaper on average. If we look how americans (have to) live, it accerbates the difference even more. Cost of living compares the "cost of a standardized basked". However, Europeans do NOT need the same things. Most importantly housing and mobility, in the US you MUST own a car and you MUST live in a house (instead of apartments). This is MUCH more expensive that Europeans that can live in a city apartment car-free. (This is a difference of at least 20k € per year!) Now, how could we solve this? Higher taxes! If people had less money, they would (have to) work more to reach this saturation point. The taxes themselves are highly needed for renovating aging infrastructure. Introduce modern infrastructure. And, unfortunately gear up the military... So this money wouldn't go to waste, but actually is spend/invested.
Americans work like 15hours a week more, they get no vacations, next to no job security, no maternity pay etc. We are not behind, we just have different life goals, I think I speak for most Europeans when I say....WE DO NOT WANT TO BE LIKE THE USA.
As someone who lives in Germany, I can tell you, live standards when you count safety, insurance, treatment of employees and vacation is much better than in the USA.
In the USA you get paid more, taxed less, and most luxury goods are cheaper as well. Despite having experienced living in Germany, and having EU citizenship via my parents, I choose the US as the best option in my situation.
@@esonon5210 It is 28-30 days in most EU countries vs 10 in the US. Then many countries have 6-12months parental leave. Free child care. Free education all the way to university and so on. Guaranteed health insurance. The differences are massive. It only really matters for people who earn below average. How big the difference is depends very much on your individual situation. If you are a healthy adult working full-time and earning above average then you will benefit from the US system and have the cash to pay for all of these services.
US citizen living in one of those Eastern European countries. I can verify, the quality of life is A LOT better. Europe needs to be very worried about their birth rates, though. Mainly because those across the Mediterranean sea are picking up momentum (economically and in population). Multiple signing peace treaties amongst themselves as well.
@@somjrgebn Well, the falling birth rates are not helped by the neoliberal policies that aim to make us more like the US, it's just a distraction to say that we should be worried about the global south that's just trying to get rid of the neocolonial yoke and barely succeeding at it.
If you were an ambitious person and wanted to start your own business, would you rather be in Europe or the USA? Conversely, if you weren't ambitious and wanted to live a more stable life with better work-life balance, which would you prefer? I think the answers are pretty obvious and can explain part of the economic dynamics of each region. The weird thing is the suicidal plunge in birth rates in countries like Italy, Germany, Spain, etc. You would think with all these social safety nets and pro-family policies in Europe that people would feel more inclined to have kids, but that hasn't been the case.
Europe is in the middle of a demographic collapse. The US will be experiencing the same thing in about 10 years. The difference is, in the US boomers had the Millennials. That didn't occur in Europe so they no longer have cheap labour and lots of consumers to drive the economy. Same thing as happened in Japan, is currently happening in Russia and is well underway in China. We'd be in the same boat in Canada except for the open-ended immigration.
Canada is aging because it’s more urbanized and more expensive. It is more urbanized because it’s colder and more expensive transport/goods. And it’s more expensive overall due to more “captive” markets and difficult east-west transport costs.
10 years? Try maybe 25 if fertility remains low. This is the US demographic pyramid: en.m.wikipedia.org/wiki/Demographics_of_the_United_States#/media/File%3AUSA_Population_Pyramid.svg Compare that to most countries in Europe.
@@veeeee1435 Yup. However, it has just under 10 years to avoid such a fate. Also, 25 years only works if there’s another country to provide consumption for all the old millenials. There are very few countries left that can do that for the required amount of time.
@@veeeee1435 Hopefully we can turn it around. US is more pro-natal than most the rest of the world. Hopefully by talking about it today the next generation will take children more seriously.
The US is the worlds top destination for immigrants and there are over 45 million foreign born citizens in the US, there arent even 45 million people in Canada. Immigration rates also arent dropping in the US and is near their all time high by percentage of population and at their all time high in terms of raw numbers. The US also attracts a pretty diverse spread of people from ultra high income billionaires and millionaires to dirt poor refugees with most coming from Latin American countries. Those Latin American immigrants have sky high birth rates too and mainly immigrate when they're young with around 5% or more being under 18 and most being of child bearing age. For the US to suffer any demographics collapse they'd need to completely end immigration and wait years, likely decades, to start feeling the effects. That's also all assuming Americans retire at the "official" retirement ages of 62-65 but realistically most Americans are retiring at older ages unless they have plenty of savings and a good retirement plan, most Americans I know are working until 70 or later.
Europe has a wealth of natural resources? I know some countries there are very resource rich but the continent as a whole I've always thought was under the average when compared to places like America, middle east, Africa and Australia.
its often the les talked about resources. Where oil is rare and coal is there in certain places, there are other resources that europe has in abundance; fertile land for agriculture, strong fishing grounds, a number of key but less obvious metals like copper in sweden etc.
@@harisadu8998 There is nothing unusual about this. The United States is a single country with a single fiscal and monetary policy. Capital from Wall Street, Silicon Valley and other large cities is distributed throughout the country without any problems.
Indeed, this is why we need a more unified Europe, Europe that will be able to face set challanges with greater efficiency. Thank you for a very informative video!
"I've seen it, the plotting and scheming of corporation to make europe one big country with no different taste, culture or history" Deus ex was again right
Europe really needs to get its act together when it comes to tech sector innovation and market leadership. A lot of other factors weigh in but tech sector performance is by far the most important thing to stay competitive in this century. I don't for a moment believe that demographics are as important, for example. One major tech innovation can feed millions off its proceeds. That's simply how this century works - it's no longer people that do the work, it's machines and you'd better be good at managing and innovating them.
Exactly. You have to think about another thing, closely linked to it, economies of scale. US can scale massively and expand to other countries. In Europe its not possible. In Slovakia we had massively successful social media platform since 2005, but you cant really go into EU market with tech to scale it, as each country promotes their own platforms as part of nations competition etc. Behold 2015 and Discord came out, which is almost exact copy of the Slovakian platform.
@@jtb5729 Stock exchange is nothing more than a betting office! This can change from one day to the next. Apple is nothing without foreign hardware. US has become a service economy.
Market cap yes, but those countries are all market leaders in their respective sectors, without them apple wouldn't be able to make anything nor would most other companies@@jtb5729
A new company starts small and the US is a much bigger market than say starting a company in Italy were to expand you have to hire translators for French, German, Spanish speakers to even get out of your home country. Start the company in the US though and all English speakers are already available and that's a lot of countries worldwide. Germany has just 53 companies on the Forbes Global 2000 list the UK has 67 while Canada has 57. Australia has 32 while Italy has just 28. Bermuda a British overseas territory with a population of just 64,000 people has 6 companies the same as Belgium a country of over 11.5 million. It's not just English speaking countries either since Hong Kong has 44 companies on the list to go with China's 302 companies.
I wonder if a big factor for Europe lagging was due to the economical devastation that was WW2. US got a lot of money helping rebuild those economies and snowballed its own thing while other countries were playing catch-up. Then the advantage compounded - you had more money to spend on high tech innovation, which gave you more money in turn and so on and so on...
If its this broad of a argument its too much of a copout 70 years had many things happening in between to make that general "cuz of ww2" Statement simply untenable unless it gets more in depth
This isn't true. Europe was on track with the US until 2008. Major European economies haven't really grown since 2008. Italy, Spain and the UK are basically the same as the were in 2008.
Europe is full of people who want governments to give them benefits. The US attracts people who want to get rich on their own. That is the big difference
Money is not the only vector we should be looking at. I believe in general people are much happier in Europe than people in USA. From European point of view it feels like in USA the value of a human being is only measured by their wealth and that's pretty alarming.
Trust me, noone has any clue what they're talking about. It's all just surface-level understanding of what's going on. A few facts sprinkled in here and there.
Europe's "lagging behind" the US? How, exactly? Better food. 3 times as long vacations, for everyone from hedge fund managers to store clerks. Great health care, for everybody. People live longer. They're happier. Women aren't forced to bear children, but if they do, there's a much better infrastructure to help them take care of them. Economics as practiced by mainstream economists (and exemplified by this video) has divorced itself from reality. It's just an elaborate justification for the economic status quo.
> Why Is Europe Always Lagging Behind The US? Lagging ? Lagging regarding murder rate ? Social differences ? Corruption ? Access to affordable healthcare ? Personal bankruptcies because of healthcare ? Access to affordable university education ? Public transit ? Walkable cities ? Work-private life balance ? It seems the USA is the one lagging behind Europe when it comes to the day to day issues people face and quality of life. Why don't you make a video next comparing things like morbidity rates, child and mother mortality rates and so on ?
@@philipjohn1338 You watch the video first. He mentions that the EU is ahead of the USA in many other factors, but he only focused on the economics, because guess what you numbnut, this is an economics channel.
Even if everything you list is true why is the European birth rate lower than the US birth rate and why is the European birth rate so far below replacement levels. European societies are slowly dying. If its so much better you'd expect human flourishing, ie more kids.
@@rathelmmc3194 Poorer nations tend to have vastly higher birth rates compared to wealthy/developed nations. The US birth rate has been in decline as much as the rest of the world and will only continue further. Look up fertility-income paradox. You compared America and Europes birth rates. Now compare both to other less developed nations. For more extreme contrast look at the birth rates of undeveloped African nations.
On one hand , Europeans shouldn't be triggered : it's literally an ECONOMICS channel . On the other hand , Economics Explained knew EXACTLY what they were doing with that title
One additional thing that was left out is conservation. Europe has a lot of big and old companies, that are kept alive just to protect the jobs. The problem is, these companies are usually not value creators at all. But their existence (and often their subsidies) prevent novel startups to take their place. These would often have a much higher productivity. A positive example you can see in the collapse of Nokia. It sparked so many new IT businesses, that the IT industry of Finland is now much bigger and more effective than it used to be with Nokia. Europe has to allow for more economic evolution. Let the big, weak industrial companies go under, and let new startups regrow. I do think, this is getting better, but it still is not as slow as it could. Especially with the European social security systems, the shortterm fallout wouldn't be as bad, and the longterm prosperity even higher.
I don't see much mention of consumerism. The US always grows because it's consumers always spend. End of story. Every other country in the world is jealous of how America benefits from consumer-led growth - just ask China. Europeans on the other hand are much quicker to cut back and live below their means. Just walk into any European person's apartment and then compare to that of a person of similar social status in the US. You got to spend money to make money. Most aligned with this point is the demographics challenge
I don't know, I lived in Finland and 2 other countries since. I remember the crushing taxes and government regulations, going completely bonkers after the EU and its bureaucrats meddling with every aspect of people's lives. It's a marvel anyone wants to start a business there. If they want a way out of the stagnation they're in, they need to ease on the reins.
Great video! I think one factor that contributes to Europe lagging behind the US is the difference in risk-taking mentality. In the US, there's a stronger culture of embracing innovation and entrepreneurship, which fosters rapid growth and drives the economy. In Europe, there's often more emphasis on stability and caution, which can hinder the speed of progress. What are your thoughts on this? Do you believe Europe can bridge the gap and catch up with the US in the future? 🚀
What do you mean by catching up ? Giving more money to the elite and making the middle/lower class poorer ? Europe is likely the place where countries take the most care of their citizens and where people are the most equal, and we don’t get extreme violence and school shootings. Im sure most Europeans are really satisfied with being the third world power if that means we keep being the first in quality of life.
If you look at the graph and the conclusion in this video about the industrial and agricultural output of the world now that is bigger than all of the existence of mankind together, you will see that thinking "growth" is a positive thing, is ludicrous. That is my main problem with economists. They have a very narrow view of what is "good". Even the word "goods" says it all. It is better to save the planet for future generations, whilst having a comfortable, insured life. Therefore I also resent the title of this video. Europe is not "lagging behind" it is at the forefront of what life should be.
13:08 Below 1400 hours can't be right. I work about 2100 hours/year and I'm from the Netherlands. When I compare myself with my surroundings, I think most people are working about the same amount of hours as I do.
It’s unemployment, people who can’t find work/ people who work part time. So it’s probably the case that there’s a lot of people who can’t find as much work as Americans.
As an American, it doesn't feel like Europe has lagged behind. It feels like they are ahead in that they understand rapid growth isn't sustainable. The us economy grows but it grows at the expense of our personal lives, retirement safety nets, healthcare, infrastructure, liveability, and in many cases freedom.
The EU has little natural resources, multiple governments within it (most of which were/still are enemies), was destroyed in the biggest war ever fought, has an aging population and still manages to compete against the US, despite all these factors. I think this speaks more to how the US is squandering their advantages than anything.
eu has 27 countries and still couldn't compete with usa us existed for just 250 years and still managed to outcompete a continent that existed for far longer than us did europ is a she tole
the EU is not "managing to compete" they have over 100+ million more people then the US but their economy is almost $10 trillion poorer than the US. so the US advantages aren't being "squandered".
@@daxtynminn3415 Of course, because the EU has very poor areas that joined in 2004 and later. But, with all due respect to Romania and Bulgaria on the EU side and Mississippi and Alabama on the US side, the strength of these areas is not very relevant. Take just western europe vs east + west coast and the picture is very different. Not to mention the fact that PPP wise the difference is much smaller.
@@alaeus2310the state of California, 1 of 50 that had been an uninhabited backwater prior to being annexed has an economy greater than the UK, France, Russia, Spain and Italy and was poised to overtake Germany. I wouldn't call that squandering if I were you. Texas's economy is greater than Italy, Spain and Russia's. New York, a tiny cold and resourceless state had a bigger economy than the entirety of Russia for multiple years. Do some fact checking please. A non- tax haven of 340 million having the greatest median disposable income and highest GDP per Capita is nothing short of remarkable.
@@sulkel Oh, how convenient of you to forget how california got inhabited, which is gold. Or how Texas got rich (oil). Without these resources, would they be the successful economies they are? Don't think so. The fact that Italy, a country that has no significant natural resources even has a GDP of around 2 trillion is nothing short of remarkable. Without the natural resources it has, the US would still be a backwater. And the reason it is squandering its advantages is simple: poverty and inequality. Your GDP numbers may look impressive, but they are unsustainable when almost 12% of your country is under the poverty line. In comparison, the EU is under 10%. Mind you, including the ex-communist states. We'll have this conversation again in 50 years, when the world won't be as oil dependent anymore and the severe lack of environmental regulations you all have will be unsustainable :)
Because Muricans are only speaking English? Actually most of the workers in the southern areas are only Spanish speaker , and other migrants like some Chinese in Chinatowns areas never learn to speak English, so what you are saying that most of the Europeans don't speak other languages than their native language?
@@theOrionsarms No. I'll explain. I was an accountant in Portugal with a master degree's in tax law. During the European debt crisis, that made the unemployment rate skyrocket, i was forced, with my wife, to run to Spain, where i had my brother-in-law and where i got a job as an office assistant. I was not capable of becoming an accountant over there because the tax law is different, not to mention that i spoke Spanish in a very primitive way (the good thing is that Portuguese resembles a lot like Spanish and so i was able to make myself understandable). Almost 2 years later my wife, a nurse, found a job in London UK, and we went to the UK. I started to work as an assistant in an office because, my English was not the best (not bad, but not the best, if you know what i mean) and the English tax laws are different from the Portuguese ones. We wished to stay for a long time so i started to re-learn English and doing some workshop and short-courses in English tax law. Then it came the Brexit. I became unemployed, the Pound fall in value and everything became unsustainable expensive. Once more we relocated to another country, Switzerland, where i am today. Once here i realized that not only the tax laws were different but also the accounting principles, and guess what, official language of the Canton, French. I started working in Infrastructures and my wife as as assistant in a Hospital. So, to resume, I was forced to learn 3 languages (outside my native language), although my diplomas were "accepted" in Spain and in the UK, in Switzerland they told me, straight to face, "That's sh*t". Different profound jurisdictions, associated with different official languages and rules and policies make almost impossible to search for opportunities in different parts of this continent.
@@tiagoquental1029 OK, I understand that because I am European too, and some of my family members also moved from one European county to another in the search for a better life, those problems are hard to solve, but language barrier is the smallest, because I don't speak Portuguese at all but both of us are understanding perfectly witchother.
@@theOrionsarms Try saying that to a recruiter here in Genève, they will will laugh at your face. Excluding United Nations, every office job application requires 1)native language French or German and 2) Permis C, i'm here since 2017 and i still didn't get it (maybe this year). By the way, if one day you desire to try, in Spain, if you don't speak Spanish, unless you are a graduate from a top university looking for a job in an international company, you'll never get a office job, never, i got it because of my brother-in-law. Say to them that you speak English and they'll throw you out of the window.
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Why are you videos always wrong though?? And lagging behind in what ? Gun violence ?
A land value tax (from the ideology of Georgism) and economically integrating more of Europe into the EU could help imo.
europe and european union is not same thing, Ukraine and Kosovo is not part of european union
@@azumishimizu1880 because is PROPAGANDA. The Americans must BELIEVE that they are ahead of Europe ahahahah. In reality US is a THIRD WORLD COUNTRY.
ua-cam.com/video/REni8Oi1QJQ/v-deo.html
You left out a lot of other factors:
- Europe’s population is declining or stagnant, and is aging more quickly than the US’s. Meaning a smaller portion of a declining population can contribute to the economy.
- Europe’s economic relationship with Russia, a country with whom it is currently fighting an economic war. When European economies need petrochemicals, they currently have to pay through the nose, while much of that money goes to… the US.
- Europe’s geography is good, but not quite as good as the US’s. One major unified river system, no external threats, direct access to two major oceans.
The population demographic issue is something I am very shocked he did not address. Europeans know how to add value to their economies, they just do not know how to have children like East Asia XDXDXD
aging population isn't a bad thing once the population stabilizes
US has immigration to prop its economy up. Europe is terrible at integrating its immigrants and has less of them.
The population aging issue will affect each and every nation on Earth as we go from high birth rate to low birth rate countries. By the grace of God our technology has given us arguably the biggest change humanity has ever experienced...now, few of us in the developed world have to contend with the horror of watching a child die during peacetime. Before around 1850, people were still losing 50% of all babies under the age of 5. My great Grandma was born in 1890, that's only 3 generations back. It's the greatest revolution ever seen, and eventually the world has to go back to the sorts of populations we had in 1900, for the sake of all of us...by tbe way, it does mean we have to have some babies just not as many as in the past. I've had 3 so done my part
How many migrants does Europe invite in each year (sorry, they are called refugees now)? I thought for sure that was the deciding factor to invite them in, and not compassion!
They currently have to pay through the nose because the entire system was reliant on Russia! Knowing what a wild card russia could be and that they certainly would turn the taps off to use as political leverage, no contingency plan appeared to be developed. Once new systems are in place to get NG from the middle east, the prices should stabilize!
The US has no external threats? Did you realize that planes are able to cross the world in less than a day? ICBM missiles in an hour or 2? We may not have threats on our doorstep (ahem, Cuba) quite like Europe has had, but its a small world after all! We dont sink a heafty portion of our GDP into defence spending ONLY to make the military-industrial complex rich! We arguable have mORE external threats due to our 'overbearing' presence in the world ( that helps out our allies immensely)!
Being born in the EU, the USA , or AU means we've won the birth lottery. Our lives are so drastically better than the average human it's hard to fathom. Being in the top 1% is pretty sweet. (making $34k a year puts you in the top 1% globally)
I'm glad to see this comment.
People acknowledge privilege as a concept, but rarely discuss it in the context of international privilege. Globally, Americans/Euros/Aussies are the privileged upper class.
The question is how long will this and its importance be forgotten until it's no longer true?
The only problem is how does that translate if you live in those countries. The amount you make is relative to where you live. Sure $34k a year might sound like a lot in the world standard but if you live in the US and 80%-90% of your take home pay is used to just live then it still isn't a great living situation. There was a report by lending club that states 60% of Americans live paycheck to paycheck which means they only make enough to just survive. God forbid if these people have an unexpected medical cost then they may end up in debt. In the US medical costs are extremely high. According to Ramsey Soultions, 77% of Americas are in debt. So $34k in the US still means you are poor.
@@tamwilfred ,
Here's something I did once to see how f***ed some are in different places:
1. Get the average house price for a given country.
2. Get the average salary in the same country.
3. Divide the average house price by 50% of the average income.
4. Say you start working at 18 or 21. So add that number you just found to 18 or 21.
That final number is a ball park estimate of how old you'll be before you buy a house in that country.
You'd be surprised who is on the top and bottom of that list.
34k in top 1%? Waoo!! Thats low with inflation.
Not lagging in Vacation Time, Europe 💪
Having more vacation time sounds like island time mentality.
Work for a european company in the US then stonks
Aldi workers enjoying their Sundays
Government jobs in America probably have better vacation time(shorter work hours) than European countries
Unemployment is now called “vacation time” 😂
I believe Germany could really be ahead in a few industries if they relaxed their bureaucracy and heavy taxation system. German companies have started to leave the country and moved to Switzerland, Austria, Sweden, Denmark, etc. The irony is that at least 2 of the countries I've mentioned have better social programs than Germany BUT their taxation laws are relaxed for start ups and new companies so they can grow before they can be a real contribution to the economy. Germany basically encourages companies to leave and demotivates new smaller businesses.
germany is such a joke of a nation when it comes to create technology
In the list of top ten biggest tech companies of the world, there are six american companies but not a single german company
I work as a software engineer
In the list of top ten biggest software companies, there are 9 us companies but not a single geman company
gemany is an embarasment of a nation when it comes to creating tech in the past few decades
@@larrybuchannan186 I wouldn't entirely agree with you. There are large software companies, like SAP, Siemens and a few unicorns worth billions like Celonis. However I believe this could be very different, they could have way more companies if the market, together with regulations, in Germany would allow it. Lemme explain what I mean by that. Germany has a culture of being anti-innovation and anti-modernisation. Has nothing to do with what a company can do as a service or tech product but if Germans and German companies are willing to use it. For example, at VW you still have machines programmed in a language nobody knows from the 70s-80s just because Germans aren't willing to spend a few hundreds to modernize their systems. That is one example that can be easily extrapolated to different areas. I still remember having to work with a company that had the opportunity of launching generative AI like ChatGPT today. Unfortunately the boss said "let's wait to see the Americans prove the concept and we'll work on it later". That's the problem at hand, in the whole country.
Don’t underestimate the Germans.
@@craigobrien781 stop repeating this puritanical sentence. Germany is nowhere as strong as it once was. Germans won't wake up from their delusions, just as Brits refuse to.
@@nigstar1239yes many people here don't realize that the government failed in economical development because they failures that were made had no short lasting impact but a long lasting impact which starts to be noticeable after a few years. Now they blame the CDU for the failures because we start to notice it's impacts but WAY to less people understand what our current government is doing. The people here are crazy like in many other countries but the difference is the government is MORE crazy.
Europ is not The head leader for 2 reasons.
1) we're ununified. Europe is not one nation. And while that comes with advantages, it also comes with drawbacks that mainly express themselves as economic inefficiencies. Thats why the EU is so important for Europe.
2) We're holding back. Europe is at the forefront of living standarts, worker protection and nature protection. All these things come at the cost of economic output.
Complacency
It's bad when the companies lose to its competitors in Asia US due to the regulations and bad laws and Germany and France are good examples of that
If your economies don't generate enough money the whole union cracked down
Just look at the protests in Germany and france
“Europe is at the forefront…” of basically everything that determines your quality of life but hey GDP go brrrrr
Whats the point of a large economy if it’s not going to be used to improve the lives of its people?
@@degummybear The scale of it does rising tide lifts all in ocean
1. Europe and the European Union are not the same thing. This channel had a chronic tendency to use them interchangeably.
2. The EU is relatively poor in natural resources (and always has been).
3. Europe has a lot of medium-sized market leaders in very specific areas. The German Mittelstand is the most extreme example of this, but it's something you find across Central, Northern and some of Western Europe.
4. EU countries prioritise differently to the US. Workers' protections, health insurance, fair wages, work-life balance, environmental protection etc. are much more important than in the US where, after decades of union-busting and deregulation, workers are seen more as a commodity (relatively speaking, in a comparison between developed democracies and ignoring the absolute travesty of a workers' rights situation you find in developing authoritarian countries e.g. 996 or similar "working cultures").
It also means that, in Europe, due to strong worker’s rights, you cannot easily fire someone who does not do anything. Also, you can’t change a whole system with a better one (replacing taxis with much better UBERs for example) due to these same worker’s rights.
@@manny27392It’s not like it’s easier in the US to change anything.
@@Maelstrommeuhhh… yes it is. Hence why we have Uber and not taxi protests blocking our major cities roadways…
Yeah this video is one of the worst ones this channel has produced in a long time.. sad
@@mitchellscheer677uber isnt the only ridehailing app. Nowadays bolt is way cheaper than uber and better
The most obvious factor is the sheer difference in size of 'addressable market' - Europe with its many languages, cultures and legal systems is far more difficult to address all at once in comparison to the US or China.
This is the more realistic perspective. I'd also add, though I know many Americans would disagree (despite not living outside North America to see for themselves), Asian countries are currently more concerned with social stability than the most Western nations are. And it shows.
Having lived in North America, Europe, and Asia, I have to say North America showed the most levels of tensions and hate towards each other.
This is easy to see within the EU, lots of mid-size companies in many countries never really venture outside of their local markets. German companies rarely go outside the German speaking countries, Nordic countries stay within the Nordics for the most part, French companies are rarely seen outside France, Switzerland and Spain, and so on and so forth. If they're strapping themselves so much there's no chance for them to grow to become global power players.
@@somjrgebnyou need to take into account how culturally homogenous each country is. I think the world will find that the US is surprisingly resilient, relative to the amount of cultural difference it's working through, as it becomes more globalized and unified
@@drchickensalad
I'm not sure if you're looking at homogeneity in a country as a good thing or a bad thing. Arguing for or against homogeneity is a debate on multiculturalism I think, which isn't necessarily what I was aiming at. But you could argue it plays a part in a nation's social stability.
In terms of homogeneity, if we are thinking regionally, North America is extremely homogeneous across its landmass compared to the rest of the world. It's countries have simply not had nearly enough time to develop their regional cultures.
What the world hasn't got an answer on yet is whether you can import many different cultures and "work them out." I'm sure the US will show us that in time.
I hope the US is resilient, as there are plenty of nice people there. But I wouldn't say the world is paying as much attention as they used to considering the world is moving more towards a regional-based order than an international-based order.
Note: These comments are by someone who was born and raised in the US and left in my late 20s.
@L: Good point. Here in California, we have “special blend” gas (and milk) which means Californians have to pay more for gas and milk compared to the rest of the country. I can now just imagine this for ALL goods in EVERY state to match Europe. Maybe that allows Americans to romanticize Europe’s small scale of the food economy, which allows small companies to sell goods, while the USA has chosen cheap processed preservative food instead.
Inflation hits people a lot harder than a crashing stock or housing market as it directly affects people's cost of living that people immediately feel the impact of. It's not surprising negative market sentiment is so high now. We really need help to survive in this Economy. The ETF/Equity market keeps swinging.
When the news is the worst and investor confidence is at its lowest, indices routinely turn from a bear market to a bull market. This illustrates how quickly the market's direction may change.
@@mcginnnavraj4201 You will need a strong FA to help you through the current market turmoil. I've been talking to an advisor for a while now, mostly because I lack the knowledge and energy to deal with these ongoing market conditions. I made more than $220K during this slump, demonstrating that there are more aspects of the market than the average individual is aware of. Having an investing counselor is now the best line of action, especially for those who are close to retiring.
I've been consulting with SALVATORE FORTUNATO SOFIA, a financial consultant whom I learned about and got in touch with thanks to a Kiyosaki radio interview she was featured on. Since then, she has served as the point of entry and departure for the equities/stocks we have emphasised. A search using her name on the internet can be done if tracking is necessary.
@@hannahdonald9071 She appears to be a true authority in her profession. I looked her up online and found her website, which I browsed and went through to learn more about her credentials, academic background, and career. She owes me a fiduciary duty to act in my best interests. I set up an appointment to use her services.
@@hannahdonald9071 🤡🤡🤡🤡🤡🤡🤡🤡🤡
I think languages and legal systems will always be one of most difficult things to navigate in Europe, and is one of the largest disadvantages Europe has over the US.
I’m trilingual, with English being my 3rd language, simply because I was forced to study 3 languages by law, as a necessity to function in an international world.
I think Americans often underestimate just how difficult and expensive these things can be to navigate for a company.
There are over 100 native European languages (probably closer to 150), and between 40% and 50% of Europeans are monolinguals, so it’s not as simple as “just” speaking English. And not all multilingual Europeans speak English either.
I think the lack of tech companies is the biggest factor. Tech is the easiest way to sell a global product in today's world. Video games, productivity software, apps, cellphones, routers, antennas. Europe has stalled in tech behind America and Asia.
@@One.Zero.One101 I rather think that the big tech companies simply moved to the USA because of a better environment, etc. While everyone is producing in Asia because it's cheap. Few European countries can supply the needs big companies need to grow and stay competitive, so most of the big shots have their headquarters in the USA, produce in Asia, and Europe is simply some important customer, etc. but not the most important place to be.
At least, that's what I think based on personal experience, etc. Some members of my fam work in the IT sector and their companies send them over to the USA once or twice a year to get into contact with the headquarters and learn the newest stuff, etc.
@@jinpachibobochan3532 Nokia was a tech powerhouse before they fell off due to no longer being able to compete on the software side.
@@jinpachibobochan3532some do move but most tech companies in the US were starred here, especially thanks to WW2 involved setting up tech centers like silicon Valley. Europe really fell behind during the digital age and were slow to change while the US actively encouraged growth. Some of the tech companies they do have aren't as innovative or nearly as large, which is kind of weird when you look at how highly educated Europe is on average.
AI will make it so that no one needs to learn more than one language.
Hello, I live in Germany.
Generally I am pessimistic about the future of the European Union over the long term, precisely because of the one aspect not mentioned in the video: aging and slowly dwindling population.
There is also a lot of ideological decision making both in Germany and in the European Parliament, while the Americans are a bit more pragmatic in my view. One example of this is Germany phasing out nuclear power this year before phasing out coal power in the 2030s. In the interim, at times of peak electricity demand, Germany will fire up more coal plants and import nuclear power from France, which obviously will increase the output of CO2 at a time when it should be going drastically down. The last two nuclear power plants to be taken off the grid this year were not even at the end of their useful life. If this is not plainly stupid, I don't know what is.
America is anything but pragmatic my friend. Nuclear is feared and people are trying to shut it down. Ideologies are a mess and no one is able to compromise on anything.
If the global order is to collapse, America would be hit the hardest, and while European nations may unify along political and economic ties that have kept the nations together for centuries, America will devolve into utter chaos.
Why did the population allow this? It doesn’t even make sense. If the population didn’t allow and they did it anyway, why don’t y’all protest like the French?
To be fair, the three nuclear power plants wont have made any difference and economically it probably made sense to shut them down.
Here in Niedersachsen the power plant produced energy that could have been produced by wind turbines. So it makes sense to shut the power plant down and use the cheaper wind energy.
We need a lot of reforms, but people don't want anything to change. That is the issue. We probably should work more not less, or we need huge amounts of productive Immigrants, sadly they actually don't want to come and usually go back or somewhere else (can't blame them). But Germany is still a good place, if you have a good education you shouldn't worry too much about this.
Typical German: Even though the sky is blue and the sun rises, we still see a wholly gray future.
You are right, that germany was a bit indecisive with it's electricity policies. But i think it is moving in a good direction right now. The thing with the nuclear power was a decision from before the climate change debate became so all encompassing and you are right that they would have been useful right now, but i would like for you to look at the reasons as well. It was a decision made after the meltdown in Fukushima where germany decided that humans are not to be trusted with powerplants that can ruin large parts of the continent if something goes wrong and the winds are by chance right. And of course the waste problem although that can be scaled down with Transatomic Power's molten salt reactors. And i think it makes sense, especially at times when tens of frances nuclear powerplants were down because of safety concerns. On the other hand i concure with your assesment of the coal plants, having to reactivate them is very painfull. But that will be sollved depending on the decisions made by the government in the next few years. Even the conservative Bavaria has actual writen laws forcing it to swap to renewable energy till 2040 despite its resistance in the last few years. So things are moving and i'm looking forward to see it happening.
The population issue is definitly a problem but i think it will solve itself once the ocean rises by 1-2 meters as grim as that sounds. There will be alot of skilled people searching for a new place to stay. And if Europe finally gets it's things together and stopped panicking it there will be enough people. And if that thank god doesn't happen, we'll have to say goodbye to a lot of social ammeneties like pensions till the population stagnates or increases again. I don't believe in a endlese decline. The government can take mesures to increase birthrates and they will have to take them. For example you could make having children have economic advantages that actually offput the costs, but that is just kmy humble opinion.
Sry about the rant
I think there are a lot of things you missed and one of them( or maybe 2) is that Europe was the major battle field during ww1 and ww2, and the Eastern is lagging behind the Western even if they have a lot of growth in the past 2 decades…. I think it’s interesting if you made a video about the Eastern Europe vs Western Europe, greetings from Romania 🇷🇴
Well Eastern Europe lagging behind the West has a lot to do with the Soviet Union.
Since the fall of the Soviet Union and joining the EU, the former Warsaw Pact countries have had high growth rates. The GDP/capita (not the be-all) is better than Russia itself, right?
Europe's WWII experience was, at one point, a positive. In the 1970s and 1980s its industrial infrastructure was, on average, younger than that of the US, because in many countries (e.g. Germany) it was largely entirely replaced after WWII.
One thing to note is that a lot of Europe has a very high standard of living, notwithstanding nominal per capita GDP below that of the US. The US is a very unequal society, so averages hide a lot of suffering by those in, say, the lowest 25% of society.
Social mobility is much higher in at least some European countries. If I had to choose to be born into the lowest 10% of society, I'd far rather be born in, say, Scandinavia rather than the US. In Scandinavia you're far more likely to get the opportunity to move up in society than in the US.
@@cv990a4 you are almost entirely wrong.
Much of the advantage of the US is a historical advantage from having been one of the only countries in the world to emerge stronger because WWII happened instead of being weakened or devastated by it. In that chart that showed working hours, notice how Germans were working almost 2,500 hours per year in 1950? It's very labor-intensive to reconstruct your entire country, especially with half of it being colonized by the Soviets for nearly 50 years. :P
The Industrial Revolution happened in Europe first, but the Post-Industrial Revolution happened in America first. While Europe was still re-industrializing after the devastation of war, the US was already in the process of transitioning to globalization and outsourcing by the 1970s, moving factory work overseas. The US had an "early mover" advantage in the Post-Industrial Age that has arguably been slowly chipped away over time, but which is still holding strong.
The fact that Europe industrialized first didn't matter in the end for two reasons: 1) Europe wrecked itself and lost decades just getting back to par, and 2) the world isn't living in the Industrial Age anymore, so it doesn't really matter who Industrialized first. Much like how it no longer matters who invented fire first because fire isn't that special anymore. :P
I mean former “Eastern” countries are beginning to overtake certain “Western” countries. For example Czechia and Slovenia are now more developed than places like Portugal or Greece.
What wasn't mentioned in this video is the distribution of income and privatisation. I'm curious how like the lower 80% income earners of both regions compare. Also the US has a much higher level of privatisation than the EU, which usually leads to higher nominal output but decreases the qualitiy of services for most people but the wealthiest. Therefore i would be very interested in a video that compares the standard of living in the EU (which differs in itself vastly from country to country adimittedly) to USA for the average citizen including access to services like education, healthcare ec.
It would also be interesting how the wages of the lower 80% have developed over time in each region.We shouldn't forget as well that the EU has grown a lot over the last 20 years in terms of new member states and new countries often had a very low standard of living to begin with but are growing rapidly since they joined.
Not even just country-to-country, but regions within countries. Admittedly, I haven't seen recent statistics, but last I heard, the Eastern part of Germany, to this day, 30 years after Reunification, still lags behind the West, economically. There is a measurable difference that still endures.
i´m from Portugal and minimun wage is 760 euros a month average is 1331 euros, quality of life and political views change from regions,most live on the coast of country, we are a country that suffers from brain drain since the 80s?, most emigrate to france,uk,luxembourg (one third of the country is already portuguese or with portuguese descendency),switzerland,usa (i think mostly boston region idk), is estimated that 5 million portuguese live abroad, in recent years life is becoming harder especially because of a housing crisis because of golden visas,digital nomads,retires and migrants especially brazillians and indians, the goverment only cares about tourism and helping companies keep salaries low
This
@@weird-guy Portugal has the same salaries as Panama
I'm sorry But this is pure copium. The EU has double the population of the United States. No matter how you slice it the average American is better off than your average European.
US has states, Europe has countries... ALOT of countries. I always observed that as difficult to work with.
The United States has 50 member states while the European Union only has 27.
@@asahearts1europe has countries, not states
Morgan Exactly. Sad to say, all it takes is one member to tank to bring it all down such as Greece. Love the country and its people, but it really hurt the Union with its economic collapse. I don't think North Dakota has the power.
@@andrewrose6051 What is another word for "country?" Google "How many member states does the European Union have?"
@@asahearts1explaning to an american why a country is different then a state is the most amarican thing ever.
I love how an economist saw numbers 5k and 100k and concluded its one tenth .
Another point to show EU's priorities, is the iPhone charging cable. EU has put pressure on apple to use USB-C charging on newer phones, which is a gain for the costumer and a loss for the company. I'm sure there are other similar examples that show EU's focus on customers protection as well as workers protection.
They just approved a new law that demands all batteries in consumer devices to be easily replaceable by the user without particular tools. This is done both to address obsolescence due to dying battery and also for recycling batteries. That's pretty cool i think
That's totally nuts .
@@qweds3127 why? With ac appliances it happens also in the usa an the rest of the world, every country has its V and Hz and a specific plug for AC for example. Its basically he same but with DC. On the battery is just a recycling thing, consumers must be able to recycle and so be it
@@tutatis96 @tutatis96
I was replying to the OP on the charger thing .
I find your post interesting although I disagree with you.
Can you give me an example in the USA where govt. has forced a consumer device to stick to a utility based law like that ? I am sure laws like that will be illegal in the US.
Standardizing mobile batteries is not comparable to standardizing V and Hz.
Standardizing V and Hz standardizes electricity generation and distribution which are massive systems installed to work for decades for the entire nation. Think about all power plants, distribution lines, transformers in an entire country. Which is not the same as standardizing battery which just works on your own mobile. Don't mobile repair shops/ company service centers replace batteries anyways if it stops working ? Then how does easy replacement by end user make it more environment friendly ? On the obsolence front , planned obsolesce is a complex topic but forcing companies to change how they design mobile phones is not a good solution imo.
I dont really think thats important at all. I use an iphone in the eu, getting an apple charger doesn't really change anything for me. Is it a bit more expensive? sure. How much? basically a kebab and coffee. That's a meaningless law that saves the customer 10€ in 2 years maybe, at the same time disrupting the production chain of a company that might increase in the price of the phone. That law helps nobody.
really great that you mentioned a previous video that covered the same or similar topics while crediting them, as a new-ish viewer I wanted to tell you I admire that practice a lot
Heyka, I missed this analysis of the impact of the type of taxation on the tendencies to integrate firms. In Europe, VAT charged and deducted at each stage of the supply chain is size-neutral. In the US, state sales taxes favor vertical integration of the supply chain within a single corporation. Therefore, companies in the EU can remain optimally small, while in the US they must integrate into one inefficient global corporation if they want to stay on the market. If Europe's problem is too-small companies, the US's problem is too-big-to-fail corporations :)
THIS. While the gigasize might help them compete on a global market in the most aggressive sectors (automoto, arms, CE), they also outgrow its own country and gain disproportionate, harmful control over an average US citizen.
Thanks for this insight. I hadn't even thought of this before now. I wonder how thoroughly the impacts of Euro VAT have been explored.
Japanese and Korean companies have a far larger tendency to be vertically integrated than American. American companies actually look at core competencies.
It's just that Americans tend towards "more".
It is large companies that do some vertical integration, like Amazon doing a lot of it's own deliveries. Smaller companies outsource components and expertise.
Sometimes a company will grow and grow, buying up other companies and sometimes branching out - the inefficient unwieldiness you talk about. That ends up being a mess and consultants/new managers have a long history of selling off parts that are not in "core competencies".
@@Johann_Gambolputty_of_Ulm- Europe completely missed the tech boat because they couldn't create large companies that were competitive. Now they are hopelessly behind. Only Europeans would spin that as a good thing, lol. Jesus they have become arrogant.
Large companies are usually more efficient than a series or small companies doing the same work because of elimination of redundant steps and labor. To wit: the entire thesis of the video is that the US is more productive than Europe because it tends to have more large companies.
Thanks for the shout-out! :) Could it be thought that you are refering to this video about Europe's Economic Decline (ua-cam.com/video/ViM_GHOK1yU/v-deo.html) as opposed to the one on Europe's Deindustrialization?
Your video was excellent!
The man himself!
I just did a rough calculation of what I work in a 40 hr week for the period of a year (not including overtime) - pto - paid holidays. It works out to 1840 hrs a year. For reference I work on the east coast of the USA as a salaried employee.
Average is not median (or whatever percentile you fall under)
I think the lack of tech companies is the biggest factor. Tech is the easiest way to sell a global product in today's world. Video games, productivity software, apps, cellphones, routers, antennas. Europe has stalled in tech behind America and Asia. 📌
You are the fool in the world. Most of the inventions are come from europe and America not Asia. Asia is nothing infront of europe. Europe didn't have better market than America that's the reason. Europe is best in quality engineering, production, invention Research and development than America ans Asia.
Another thing to consider regarding this topic is: who makes Europe. Because, when you looked at Europe's big companies VS the US and Japan... You considered Europe as whole. But in this includes countries such as Bulgaria or Greece, who struggle economically (even if they are doing better and better). These consider thus have no major companies to rely on, yet they make up a part of the EU ...
I always kind of hate it when people compare the EU and US because they do tend to cherry pick things. They focus on the wealthiest and most successful parts of the EU and tend to discount less successful and less free parts of the EU. Like half of the EU dont recognize or allow gay marriage but people will focus on LGBTQ+ rights in places like the Netherlands and when comparing things like incomes they'll focus on really wealthy places like Luxembourg and Germany but will ignore most of Eastern Europe and the Balkans. The US has similar extremes: I live in a medium sized city in a medium sized county in Washington state and for the same price of a 100 year old 1 bedroom house here you can get a nearly new 3-4 bedroom house in most parts of the US and that same amount wouldnt get you a shack in large parts of California.
@@arthas640thank you yes! EU is a set of countries that independently are small and weak, and not as wealthy. The US is just one country. As a gay guy, thank the Lord I'm sorta safe in any state vs EU having literally countries I'd have to avoid. Also have they seen the population and wealth of just California? I'm 28, earn $115k+, no debt, and over $100k net worth. I can't even get a tiny ugly 1 bed house here in any coastal county! Of course if I'd move to Kansas I'd have a mansion.
@@arthas640 The point about housing prices is roughly the same in Europe. Getting a tiny apartment in London would mean you could be close to a King/Queen in the poorest countries of the EU.
@@djm2189 I don’t think that is really true. I can’t think of a single EU country where you would be unsafe for being gay. The worst is Hungary but I would say that seems only as bad as some areas of the southern and midwestern USA. Being trans is another matter. Even the Catholic Church seems more chill about gay people than the US evangelicals.
To put it in comparison I’d struggle to feel safe in any American state given what I have heard about your police forces and the fact that so many people carry fire arms for self defence. I come from a rural background in the UK so I a have seen plenty of guns but never with the intention to be used to shoot people only animals.
@@Jay_Johnson There is no point assuming things about another country based on things you've heard on the news. I've been to a few places in the EU and the US. Honestly most folks are just trying to live their lives and earn a living. The "bad people" you hear about make up almost nothing compared to the whole population. The media is the enemy of the people.
12:25 It really is a small world. Just yesterday I saw a Visual Capitalist graphic that showed the number of working hours by country. It brought up some interesting points to think about in its sub data. For example, in Japan there are probably a lot of unclocked hours because of culture, despite recent efforts to change that. And in Germany there are now strict rules about how long the work day can be, with a "long" day being required to come out of the end of the week.
Your small world is called algorithm
@@Clifford_Banes It could also be frequency illusion. The Visual Capitalist just published the chart 2 days ago, and it's a topic I pay a lot of attention to.
It's also not just the hours but what you do with them. Japan has a highly presentist work culture, so even though you might be at work late you won't necessarily be doing anything productive, a lot of hours are filled by inefficient processes or pointless make work, or even no work at all, it's not uncommon for Japanese employees to play games or watch videos while at work waiting for the boss to leave. Contrast that with the US, which still works long hours but has a far more output driven work culture, so those long hours are filled with mostly productive tasks.
People with ths argument always magically forget that for example people in the Netherlands will soon have to work till 69.
That's what you get when you bring in unlimited clowns, give them pension, but they have never paid a share for their pension, so they are stealing..
And because they are stealing i have to work till i die. Isn't socialism so cool!
Europe should reduce its reliance on Chinese manufacturing, as otherwise, it might eventually become dependent on China and risk becoming a Chinese vassal."
One interesting trend I notice is that some corporations in Europe use English as their lingua franca to attract a large potential talent pool and make it more competitive.
after the globalisation lead by the british, english became the language of business. If you want to expand internationally or even beyond a certain size then you need to have at least a reasonable grasp of it
@thesherbet I don't mean it in the sense of knowing English so you can interact with your business associates in distant lands. I think that is the usual interpretation of the concept.
What I mean is a country like the Netherlands using English as the lingua franca of intra company communication so that they can attract workers from other EU nations and even the wider world to work in their companies in places like Amsterdam or Utrecht.
This makes sense for companies competing on a global scale.
It’s the official international language of business.
@@stevedavenport1202this is not true in the slightest. If they speak english that means they do business internationally or have some kind of responsibility internationally.
Otherwise, it’s dutch all the way.
@@stevedavenport1202 companies who do this are those who have a lot of foreigners working in them. otherwise it's counterproductive, as functioning in your native language is more efficient.
Sweden alone produced more international brands and global corporations than most US states, not to mention France, Germany, the UK, Netherlands, etc. Europe is doing just fine when it comes to every single metric I care about. What you call stagnant I call stable, what soon will become circular. The only stagnation I can see is happening inside the heads of mainstream economists, they still think in obsolete ideas and absolutely refuse to change their rigid thinking.
keep your head in the sand, lazy Eurognamus.
Name the Swedish global corporations.
@sergeymelkumov5940 I haven't heard of 3/4 of those (plus Spotify is becoming heavily Americanized) whereas the US has a hundred companies I could name (I'm a Russian)
@@sulkel if you haven´t heard of those companies maybe you should not comment on global economy and expand your knowledge base first.
P.S. funny thing, I only listed those companies that actually produce consumer products. there are also tons that are industry specific and mostly known for B2B products that understandably normal people might not know about. since you are Russian, might have heard about Tele2 and Saab? ) Paradox entertainment and Dice if you are a gamer? not bad for a country with population less than state of Ohio (name same amount of companies that came from state of Ohio) or city of Moscow.
A European refusing to take criticism? Why I never! Lol, you guys are worse than Americans.
Overregulation and lack of innovation? It seems like the EU (from an American perspective so take with significant salt) always wants to regulate rather than allow innovation. I read somewhere that America is innovation without regulation, Europe is regulation without innovation, and Asia is somewhere in the middle of that spectrum.
Well in europe we have a lot of right's concerning working and work/life balance so innovations that are related to work have it much harder to be implemented quickly
@@NilsDeutsch-w3n Europe is lagging behind the US in innovation in general though. Look at tons of recent inventions and you'll find that even when they're invented in Europe it's the Americans putting them to use first. Europe had tons of electrical engineers but ended up buying a lot of American electrical product and services, Europe developed a lot of early computers but ended up buying American electronics, Europe was making cars and trains and tractors before the US but wound up importing a ton of American automobiles, Europe developed supermarkets and malls around the same times as the US but the US was opening international branches while European supermarkets and malls were still only within Europe.
Europe and America operate in opposite ways sometimes. Europe innovates socially and evolves socially much faster, doing things like gay rights sooner and workers rights sooner (at least withing Europe, their colonies not so much) but the US innovates faster technologically. Like i work construction and I see even higher income areas in Europe that are still using a lot of more dated techniques in European buildings that make them look like an American equivalent from 30 years ago, even small stuff like switched outlets for lamps which was common in the US until the 80s and 90s when lamps went out of fashion but are still common in parts of Europe today even in newer buildings.
I'm not used to intelligence in videos on economics, this was a pleasant surprise. Good Job.
What about the episode about Poland? 🕵🏻♂️🇵🇱
I feel like you have already done this, but if not, then a video on working hours, worker productivity, investment in worker education and training, investment in research and development per capita among various countries around the world would be very helpful.
Hey, could you a video comparing dictatorships like China and Singapore against democracies like US from an economic aspect
Singapore is a democracy, it just has strict laws but that does not make it a dictatorship
We can't call the American government a democracy
@heptex8989😂jokes
@heptex8989Yeah they love to elect one party from selection of one party
Singapore and China seem like hugely different systems to me. True, both are authoritarian, but it seems like due to Singapore's small size, the people are able to hold their leaders at least somewhat accountable. Which in China would be much more difficult due to the vast size of China.
I like how you pointed out the smaller creator!! Awesome video, keep up the work.
There's a lot about Europe I admire, even though I'd never live anywhere outside of the USA. But geography/natural resources and raw population/productivity is really at the heart of it. Anything else you list rests on top of those. It's the sheer scale in the U.S. that gets us to the top, not necessarily that we're smarter or harder working than anyone else. Only China and India, the billion person club, have more people. A professor of mine once called it Western prosperity on an Eastern scale, and included Japan in that. I think it's pretty accurate.
I'm sorry to break it to you, but your theory is deeply flawed and just plain wrong. Why is that? The EU has a much bigger population than the USA (it has 447 million people, while the USA has 332 million). Europe as a whole has more than double the USA population (748 million).
Europe's population got devasted in WWI & WWII. A lot of the continental industry was smashed. The USSR also wrecked a lot of the remaining industry in the Eastern European countries they took over.
Post WWII Europe had to rebuild while the US simply built. That's several decades of advantage right there, setting supply chains, name recognition, creating immigration of the educated, building a capital advantage.
Being one large country certainly helped that growth, but not being wrecked was probably a bigger factor.
@@recoil53 Fair enough but we've been the richest nation since the late 1880s. The only thing that changed in 1945 was our military commitments. We didn't need Europe to get wrecked to be on top.
@@kilpatrickkirksimmons5016 Well, building a nation on highly productive vast swathes of land using slave labour would easily net more profits than a bunch of colonial powers having to fight off each other as well as subduing resistance in their colonies. I'd say that with or without the world wars, the US was always going to have a significant advantage over Europe both in terms of a unified administration as well as scale.
@@bazingacurta2567Leaving aside the fallacy of treating the EU as anything like as coherent as the U.S., you'll note I listed other factors besides population. It's the scale of the prosperity which was my point, not just number of taxpayers.
I was going to say they probably care more about their people than the US does. Especially since there seems to be a bunch of companies in the states just going back to child labor. 😩 As a US citizen, I'm very jealous of their work-life balance and how they're treated.
As a Japanese, I'm jealous of both.
I would personally prefer to immigrate to Western Europe instead of US, because America is stupid to fit in my standards.
@@yuki-sakurakawa japan sounds like output all else work-life balance maxed out to work.
i would rather choose EU comfyness tho being more comfy has a big value on its own in my opinion that doesnt show on gdp ppp. non monetery personal value
Would rather live in Africa,then Japan because they're Struct culture is craaaazy
Not true, Japanese fake data
Basically when it comes to wealth and the strength of the Economy. The us is able to do much better … when it comes to overall quality of life. The Europe majorly beats them.
people who live in the new england states, the pacific north west states, and hawaii are probably lauging at this comment.
@@daxtynminn3415 That's one thing that pisses me off when people compare Europe to America: they tend to cherry pick what parts of Europe they want to use. Like even things like social attitudes like views on LGBT: sure there are plenty of more conservative parts of the US that tend to get the attention but there are countries in the EU that are worse then the worst US states like Poland who still have LGBT free areas but people will compare the most liberal parts of Europe as an example. Same story with race, people will compare the American south to the Netherlands and ignore things like the fact that the US has minorities in high positions like even president while most European states are pretty uniformly white and the reason they never got as many brown people as the US was because they excluded immigration by non-whites even crafting many laws that made it nearly impossible for non-whites to move from the colonies while allowing in white immigrants even if they were born in the same city.
I think there is a possibility that Europe is a more mature economy. You see a lot of Americans questioning their current economic priorities and slowly losing industries to developing countries with lower wages. It's quite possible that the USA will eventually go the same way...
This... definitely paints an overly-rosy picture of the future of Europe. It completely ignores demographics for starters.
Also, I'm pretty sure the decline of globalization is disastrous for the European economy, since France and Germany are export heavy economies. Meanwhile, the USA would actually benefit, since it's import heavy.
Thats why Europe is importing northern Africa and India into its conglomeration; to diffuse the population 'bom.b'. All those migrants are displacing many Europeans, driving the costs of living up, suppressing Europeans natural inclination to have families, and further necessitate the need to invite more 'refugees' in.
I'm quite interested on why you didn't mention red tape and over-regulation that effectively can be the difference between life and death for businesses (and has innovation dead in the water here in Australia). For the little I know about the USA and the EU, the latter seems way more interested in regulating next to everything while the US seems to give businesses much more room to go bananas and reap the rewards.
Heard it's easier to start a business in sweden now than the us. And it wasn't from a raving socialist. It was from the Milton Friedman Association.
That’s true, come here if you wanna start a business. Fail a bunch, then eventually. Strike gold.
@@Spabsa no. A lot of companies start outside USA, then move to USA to exploit the system, cause your democracy is ran by companies, not the people. AKA if you're rich, move to USA to get richer. USA has very high wealth disparity.
Funny how some of the most regulated countries in the Europe, the Nordic countries, seem to have more big businesses, more startups and millionaires per capita.
In many ways I think that failure is the specialty Americans know and understand to an art, we how to use it to our advantages. A lot of countries fear failure, given that failure typically means it’s the end and chances are there is no retries. There are plenty of countries that have learned to take their chances, but a good chunk are withholding themselves from making investments into projects they cannot afford to lose.
Meanwhile, failure to Americans is part of the learning process, and to us we might not want to fail, but what we hate more is an opportunity to slip by. So culturally, or at least it used to be, it was more important to encourage others to try taking those chances. And if you found yourself down, if you at least had a good community, they’d come to help support you to get back up and to try again. Over time, we’ve learned there is value in “failing,” if a person actually has the intelligence to study then they’d take advantage of the mistakes made and find ways to correct it. So through failure, we learn how to succeed. Taking taking risks might means there’s a chance for loses, but there’s also that chance to gain too.
Best way to sum it up is the infamous quote of Edison “I did not fail, I just found 1000 ways that won’t work.”
As an American, I constantly see devastating problems on the horizon for us. But then I look around the world and many countries are facing the same problems today.
The truth of the matter is…. It doesn’t matter. Are you happy? Are you healthy? These are the questions that matter not your GDP
4:37 There's something to be said about population lagging behind the industrial growth when it moves that fast. People generally just don't adapt to change that well, especially as they age. There will be a lack of experience, as well as established education systems in place as well as cultural changes that need to happen. While the best of South Korea and China can rival their western counter-parts, between that and bottom there can be a wide gap. Though the lack of experience can be considered a good thing as here in the USA we often have old executives who stifle innovation because they use "that's just the way we've always done it" as excuse. A green executive who doesn't have an established set of "ways he's always done it" and in fact is still learning might be a blessing.
I think the phenomenom can be partialy explained by the diffrent priorities that europeans have in contrast to the USA. A european that has a job that pays him enough money to live a normal life without big sacrifices would mostly don't take a new job that pays 100% more but you gotta no life it or its something thats not fun. So we priorities a happy life over a financially sucessfull life.
Plus not needing to dread medical bills also helps
Often, self-inflicted medical bills. Too much accumulated stress, not enough pto, too much unhealthy food, and not enough exercise due to poor worklife balance may be the cause of many medical bills.
Lol salty Euros. “hEaLTh CaRE tHo”
@@abdiganiaden salty or content? 🤭
So far its people saying "im ok with how it is because i dont have to pay out of my nose for healthcare"
🤣
You want to say "im fine with paying for healthcare because it makes me proud that my country tr scores hihher in comparison"?
If not, isnt it you who is salty?
@@TheGahta I’m young and healthy and have health insurance thru work. You guys always talk about exceptions like it’s norm.
Plus our disposable income is greater than your entire paychecks so keep your long wait times basic health care.
Most Innovation comes from US anyway including medicine.
Notably, productivity is also based on how wealthy a country is. A cashier working in the Bay Area is somehow a lot more productive than a cashier working in a developing country
Exactly. Im amazed that such a simple concept is still lost in translation. Adam Smith: Wealth of Nations. When nation produce more, it consumes more. Natural resources are not wealth creating, production is. Many people dont underdstand this and think that Africa is rich because it has tons of resources, lol :D
@@Zoltan1251who tf thinks Africa is rich lol
@@DivinesLegacy Nobody. Im saying tons of people on the internet think Africa is poor because everybody is stealing resources. They think, if they got paid for it they would be as rich as the west. Doesnt work like that. You have to produce products to be rich.
The US is for sure way ahead in terms of tech industry, salaries and big companies, that's not even debatable, and Europe is about to face many challenges, but still the US is lagging behing in many other aspects:
Health Care System in EU > US
Safety in EU > US
Work-Life Balance EU > US
Public Transportation EU > US
$ Education EU < US
quality of life for low income people. Being poor in USA really sucks. Also homelessness and drug addiction is a huge american problem which must be addressed.
The safety thing is very region-specific, both within the EU and within the US. There are states in the US with a lower murder rate than some European countries; the state with the highest murder rate is almost 10x that of the state with the lowest murder rate, within the US. There are states where the rate of gun ownership is less than 10% and there are states where it approaches 50%. The differences are impossible to exaggerate.
There's also a war on in Eastern Europe, so...there's that. Puts the concept of "safety" in a whole different mental frame. Consider the example of the Polish people who were killed when a Ukrainian air defense missile went awry and accidentally landed on top of them. Nobody in America died from being struck by a foreign missile this year.
us has six of the top ten biggest universities in the world while the eu has zero
eu gets its as kikd by usa
@@larrybuchannan186 Well according to QS from the top 10, 6 are European. And of course some of the best Universities in the world are in the US, but how many people have acess to those universities?, how much do they cost?. Europe is almost Free, you don't have to get a student loan which is one of the worst crisis of the US in the last years.
@@unbreakable0327 Remember, the US has a lot of states tho. For example, in the New England states and the North Western states saftey is on the same level as Europe. Also, community college is free or affordable in those parts of the US. But if we are generalizing the whole USA and Europe than I guess your right.
I do think Europe and more specifically EU has work to do when it comes to unified economic systems, investing and such. But really the issue is that Europe is not single country. EU is quite successful both politically and economically, but we still work as co-operation of individual nations, with varying economic and political systems. I think political systems will always differ, but there could be some work to be done to standardize some economic aspects across the union.
Ultimately problem is two world wars, and fact that Europe is just not a single country. Honestly there's really nothing too complicated about it. Well it actually is, but if we take broad overview it is.
US on other is massive country with a lot of people in extremely secure and advantageous geographic area. Militarily and economically. With a ton of natural resources to boot. And it escaped destruction of world wars, loaned a lot of money in process to Europe and overall enjoyed position as world's sole superpower thus being able to leverage that for advantageous dealings. US basically has won lottery one after another since they have been a country.
This ignores the fact that Europe had half the world at its disposal. They colonized continents with more people and resources than the US.
Won the lottery since its foundation?.. You’re forgetting that the US started out quite poor. Towards the end of the 18th century it had just broken its chains from British colonial rule and was still predominantly an agrarian society. Meanwhile, Western Europe at the time was reaping the benefits of the industrial revolution and the wealth it generated from its colonies overseas.
@@DCampusano1having all your land on tthe coast (and a pretty good coast lets say, western coast ain't that much good) is pretty helpfull
Love ur content, rly makes me learn a lot about economics keep up the great work
Your videos are always fascinating and interesting, well done mate!
As an American i wish we had Europes quality of life. #makeamericaaeuropeancolonyagain
Hilarious
The U.S. has been paying for Europe’s defense for 80 years. It would have been nice to have that money invested in America.
It helped make the US a global reserve currency. Which has beenfitted you hugely.
Keep making story in your head
@@DaDungeand it should continue to benefit Americans, europeons need to learn their place.
Nah it wasn't worth any of it
Doesn't has to catch-up anyone or any country with all sorts of dramas, they are completely ok. Europe has a unique cultural heritage and diverse economies that contribute to its competitive advantage in the global arena. Additionally, it leads in many areas of innovation such as healthcare, renewable energy, and sustainable agriculture thus it's important to recognize that competition should not always be the driving force and that each region should focus on leveraging its strengths while addressing areas of improvement to ensure equitable development and progress. ☝️🙏
There seem to be a lot of videos about Europe is a healthier place to live. These videos describe the universal health care systems, the cities that are set up for healthy walking and cycling, the better diet, more time for important events in life and life itself. I've never been to Europe, but it begs the question as to whether these folks are behind. Europe has also had a long term disadvantage of more expensive energy which has hindered them. I suspect new nukes will be built in the next generation which will essentially nullify that hindrance.
I do have some skepticism about this. I'm not convinced that you can call society "healthy" that isn't replacing itself. Practically every single European nation has sub-replacement levels. By the way the US also has this issue, just to a lesser degree.
Having lived in both, this was my experience:
1. US has a stronger economy. In terms of economic growth, they are very smart. In terms of social stability in growth... um... not so much.
2. Europe has a weaker economy. While they are smart with economics, they have a certain moral against "growth at all costs" like the US does. For this reason, their social dynamic are more stable so far. In my experience even in Eastern Europe, the quality of life was A LOT better than my life in the US (lived in the Mid West and major cities).
I agree about the birth rate, though. I think the reason is the quality of life there (compare Gini indexes and life expectancy) has made them less "concerned" with having kids. Aside from South Europe, I don't think the reason for their low birth rate is the same as for the US. One is likely because they are too comfortable, the other likely not comfortable at all (again, compare Gini indexes).
TLDR: Both have gaping blind spots. Choose your poison, they are both fatal.
@@rathelmmc3194 Even Bangladesh have a fertility bellow replacement level. This doesn't mean that it is not a problem, it is just a one that most of the developt world has. US is an exeption.
Nukes are for war..
You're referring to Nuclear Power plants, Right?
@@frantisekhajek6775
US isn't that much of an exception. Use still has a fertility rate below replacement, aside from their more rural Midwest area trying to push it up (which the US tends to ironically disparage with their politics).
I agree, though, this is a general problem around the world. The fact most parts of the world are having this issue for many different reasons, except India, makes me wonder if this is just unavoidable. If not, we need to at least understand why it is happening and address it without throwing useless polarizing politics at it.
I appreciate the disclaimer about predicting the future.
Europe is not a country. It will never become one. Its a miracle what this union managed to achieve despite not being a country. Love this place!! We are example what UN should look like, united countries working together to benefit everybody.
eu is leftist garbage
The big problem of the EU is it isn't one mega market like the US or China, but several small, medium, and large markets that are sometimes complimentary and sometimes conflict. This creates inefficiency.
US, China, and Japan in contrast have large, unified economies that allow businesses to nurture before jumping into the global economy. These matured businesses compete much better on the global stage.
You have no clue what the EU is. Its one single market beside other things. 🙋🏻♂️
That language barrier and different laws are really stifling businesses growth outside of their country of origin
@@avengerulsasuke5814 This is nonsense. I dont care if they speak french or spanish or geman in the country where I get my product from.
@@strasbourgerelsass1467 I work for a start up and believe me it makes a difference. Many of our sales are done thru phone calls and we are a small team.
More than half of the European population doesn't speak English. How are we supposed to know almost 20 languages?
@@avengerulsasuke5814 I work in the advertising / marketing sector and everyone (!) we are working with, can communicate in English or German (where I am). I dont know with which people you are working. 🤷♂️
Great video - this is an issue I’ve read elsewhere and is not really discussed. In Britain we have a particular problem with a lack of business investment as well as being good at starting new companies, but not as good at scaling them up. With many British start ups eventually moving to the USA to be listed to get access to more capital.
However, I got frustrated with the definitions. At times you refer to Europe as the EU27, and at other times you refer to Europe with non-EU member states like the UK, Ukraine and Kosovo. I do think it’s important to be specific.
He's from Australia; from his perspective, those of us in the Northern Hemisphere are all just weirdos clinging to the underside of the planet, like barnacles on some vast ship. Who would name one barnacle differently from another?!
The uk fucked themselves with brexit imo, i think the consequences will be more impactfull than they thought.
Some of the eu problems are an aging population,high burecracy, different laws and regulations across member estates,some countries are very protective of their own country, germany and france basically ran the eu leaving other member feeling sour and unsure of the future.
aggregating the eu into one i think is not good and doesnt give a correct picture, also he interchange between eu,europe an
@@StochasticUniverse wow so xenophobic
@@weird-guy Brexit??? M8, the UK has been declining since 2008! Actually, some figures improved over those last years! The problem is not Brexit, but all the political parties in power!
well done! i am from the US and i want to see the EU and all of its member countries reap enormous prosperity.
Europe is leading the US in:
1. Quality of life
2. Education
3. Healthcare
4. Family unity
5. Not forcing immoral gender agendas.
Thus, the question is, will the US ever catch up?
So true. The US ranks 21st in Quality of Life - behind many other rich countries.
Quality of life is more a propaganda
Quality of life in the US depends on where you live and work and it’s a lot of places in the US that have a better quality of life just like education. US still has some of the best universities in the world and people have built trillion dollar companies that have make a lot of breakthroughs in tech unlike Europe. Not to mention the US is able to defense itself while Europe treats its people well but can’t protect or defend them with a lot of help from the US.
On average USA has a higher gdp per capita than Europe and a higher quality of life , it is on top 14 , and also USA is as developed as Luxembourg
@@David-jp7gw Gdp per capita is indeed higher for the US, but it is skewed due to middle class inequalities. Literacy levels at schools, US score poor (not even in the top 20). Quality of life is significantly lower for the US…
As european, I can say europe is lagging behind the usa and chína because of the lack of tech innovation, economic and mîlitary independence.
True
No. Americans buy every innovative prosperous european firm. As it was said in video US has a much more capital. (Dollar leading role)
This is complete nonsense. The EU is leading in innovation. Thats why it is by far the biggest exporter on this planet. Where in Europe do you live? 🤔
@@strasbourgerelsass1467Europe's biggest export products are cars and car parts and due to lack or innovation, the US and China are overtaking Europe in the automotive industry
@@superjonne7916 Another one who has no clue. Europe's biggest export fields/products are industrial equipment and pharmaceutical products. 🤦♂ However... what kind of car innovations do you mean in the US?
Orange does exist outside of europe. It’s a major competitor in the Dominican Republic (though using a different name)
I saw them in Tunisia too.
Incredible video, an unbelievable mix between music and philosophy
Nobody can become financially successful overnight. They put in background work but we tend to see the finished part. Fear is a dangerous component, hindering us from taking bold steps we need in other to reach our goals. you have to contend with inflation, recession, decisions from the Feds and all. I was able to increase my portfolio by $289k in months. You have to seek for help in the right places.
@lloydbernard5847 As an investor, you should be aware that even with the best strategy and resources, some investors would still outperform others. In my case, I needed to consult a market analyst for advice in order to grow my account to almost $1 million, withdraw my profits just before the correction, and start buying again.
@lloydbernard5847 You should be aware as an investor that some investors will still outperform others even with the best strategy and resources. My situation required me to seek advice from a market analyst in order to increase my account balance to almost $1 million, take a profit just before the correction, and begin purchasing once more.
That's amazing! My portfolio has taken a severe hit, so I could really use their knowledge. Who is the one directing you?
I have "LISA ELLEN SHAW" as my investment advisor. She has a solid reputation in her field and is a true genius when it comes to diversified portfolios, which help portfolios be less vulnerable to market downturns. She may be a name you are already familiar with; a Newsweek piece helped me to do so. She's a Google-able person.
@@lisaollie4594 I searched her up online and checked out her credentials since I was so intrigued. Top-notch! I emailed her to inquire about accepting new clients.
This comments section is totally going to be a bastion of civilized and non-controversial discussion..
As always!
Oh I can see all that gravitas manifesting already lol
In recent years, I have developed another theory, why the US is having higher growth than Europe. (And it's actually a positive one for European people.)
Europeans simply don't have to work as much and as hard for their standard of living.
I witnessed this in Switzerland. Despite having a very liberal labor market, with high working hours for a full time job, the working hours on average are constantly decreasing.
In fact, many of my friends CHOSE to work part time, because "I have enough money anyways. But I want more time off."
Working more for money is only valuable, if it gives you more benefits than "time off" would.
My theory is, that the cost of living in Europe is so much lower, that more people can actively chose to make this decision.
For one, you can look at the cost of living statistics, that instantly explains a part of it: Europe is about 40% cheaper on average.
If we look how americans (have to) live, it accerbates the difference even more. Cost of living compares the "cost of a standardized basked". However, Europeans do NOT need the same things. Most importantly housing and mobility, in the US you MUST own a car and you MUST live in a house (instead of apartments). This is MUCH more expensive that Europeans that can live in a city apartment car-free. (This is a difference of at least 20k € per year!)
Now, how could we solve this?
Higher taxes! If people had less money, they would (have to) work more to reach this saturation point.
The taxes themselves are highly needed for renovating aging infrastructure. Introduce modern infrastructure. And, unfortunately gear up the military...
So this money wouldn't go to waste, but actually is spend/invested.
Woah. He should pin 📌 you for this fr
Americans work like 15hours a week more, they get no vacations, next to no job security, no maternity pay etc.
We are not behind, we just have different life goals, I think I speak for most Europeans when I say....WE DO NOT WANT TO BE LIKE THE USA.
Add Australia to the not wanting to be like the USA bucket.
As someone who lives in Germany, I can tell you, live standards when you count safety, insurance, treatment of employees and vacation is much better than in the USA.
I wouldn't call one extra week of vacation a much better life standard.
In the USA you get paid more, taxed less, and most luxury goods are cheaper as well. Despite having experienced living in Germany, and having EU citizenship via my parents, I choose the US as the best option in my situation.
@@esonon5210 It is 28-30 days in most EU countries vs 10 in the US. Then many countries have 6-12months parental leave. Free child care. Free education all the way to university and so on. Guaranteed health insurance. The differences are massive. It only really matters for people who earn below average. How big the difference is depends very much on your individual situation. If you are a healthy adult working full-time and earning above average then you will benefit from the US system and have the cash to pay for all of these services.
Half of my family left Germany for the US. They have no plans in going back. So I beg to differ.
Funny for happiest countries in 2023 winch Finland ranked the highest. The united States ranked higher then Germany, UK or France.
Western Europe and parts of Eastern Europe are ahead of the US in terms of quality of life and social harmony, which is what really matters.
US citizen living in one of those Eastern European countries. I can verify, the quality of life is A LOT better.
Europe needs to be very worried about their birth rates, though. Mainly because those across the Mediterranean sea are picking up momentum (economically and in population). Multiple signing peace treaties amongst themselves as well.
@@somjrgebn Well, the falling birth rates are not helped by the neoliberal policies that aim to make us more like the US, it's just a distraction to say that we should be worried about the global south that's just trying to get rid of the neocolonial yoke and barely succeeding at it.
Guardio's security scan is a useful tool.
If you were an ambitious person and wanted to start your own business, would you rather be in Europe or the USA? Conversely, if you weren't ambitious and wanted to live a more stable life with better work-life balance, which would you prefer? I think the answers are pretty obvious and can explain part of the economic dynamics of each region. The weird thing is the suicidal plunge in birth rates in countries like Italy, Germany, Spain, etc. You would think with all these social safety nets and pro-family policies in Europe that people would feel more inclined to have kids, but that hasn't been the case.
Europe is in the middle of a demographic collapse. The US will be experiencing the same thing in about 10 years. The difference is, in the US boomers had the Millennials. That didn't occur in Europe so they no longer have cheap labour and lots of consumers to drive the economy. Same thing as happened in Japan, is currently happening in Russia and is well underway in China. We'd be in the same boat in Canada except for the open-ended immigration.
Canada is aging because it’s more urbanized and more expensive. It is more urbanized because it’s colder and more expensive transport/goods. And it’s more expensive overall due to more “captive” markets and difficult east-west transport costs.
10 years? Try maybe 25 if fertility remains low. This is the US demographic pyramid: en.m.wikipedia.org/wiki/Demographics_of_the_United_States#/media/File%3AUSA_Population_Pyramid.svg
Compare that to most countries in Europe.
@@veeeee1435 Yup. However, it has just under 10 years to avoid such a fate. Also, 25 years only works if there’s another country to provide consumption for all the old millenials. There are very few countries left that can do that for the required amount of time.
@@veeeee1435 Hopefully we can turn it around. US is more pro-natal than most the rest of the world. Hopefully by talking about it today the next generation will take children more seriously.
The US is the worlds top destination for immigrants and there are over 45 million foreign born citizens in the US, there arent even 45 million people in Canada. Immigration rates also arent dropping in the US and is near their all time high by percentage of population and at their all time high in terms of raw numbers. The US also attracts a pretty diverse spread of people from ultra high income billionaires and millionaires to dirt poor refugees with most coming from Latin American countries. Those Latin American immigrants have sky high birth rates too and mainly immigrate when they're young with around 5% or more being under 18 and most being of child bearing age. For the US to suffer any demographics collapse they'd need to completely end immigration and wait years, likely decades, to start feeling the effects. That's also all assuming Americans retire at the "official" retirement ages of 62-65 but realistically most Americans are retiring at older ages unless they have plenty of savings and a good retirement plan, most Americans I know are working until 70 or later.
Europe has a wealth of natural resources? I know some countries there are very resource rich but the continent as a whole I've always thought was under the average when compared to places like America, middle east, Africa and Australia.
its often the les talked about resources. Where oil is rare and coal is there in certain places, there are other resources that europe has in abundance; fertile land for agriculture, strong fishing grounds, a number of key but less obvious metals like copper in sweden etc.
When Russia is included the resource picture is different. But its misleading to include russia.
Love your videos and Really respect you mentioning @intoeurope 👌🏼💪🏼
This video provides a valuable perspective on Europe's future.
Today, West Virginia has a higher GDP per capita than the UK, which is amazing!
But at the same time, West Virginia is a hole.
In terms of income and consumption, WV is better than the UK, but not in terms of quality of life.
@@WASD111 Yes, you're right but WV being higher than the UK is really incredible.
@@harisadu8998 There is nothing unusual about this. The United States is a single country with a single fiscal and monetary policy. Capital from Wall Street, Silicon Valley and other large cities is distributed throughout the country without any problems.
Indeed, this is why we need a more unified Europe, Europe that will be able to face set challanges with greater efficiency. Thank you for a very informative video!
More centralisation in Europe will lead to less economic growth and less democratic accountability.
"I've seen it, the plotting and scheming of corporation to make europe one big country with no different taste, culture or history"
Deus ex was again right
Europe really needs to get its act together when it comes to tech sector innovation and market leadership. A lot of other factors weigh in but tech sector performance is by far the most important thing to stay competitive in this century. I don't for a moment believe that demographics are as important, for example. One major tech innovation can feed millions off its proceeds. That's simply how this century works - it's no longer people that do the work, it's machines and you'd better be good at managing and innovating them.
ASML (NL) incl. Trumpf and Zeiss, SAP
Exactly. You have to think about another thing, closely linked to it, economies of scale. US can scale massively and expand to other countries. In Europe its not possible. In Slovakia we had massively successful social media platform since 2005, but you cant really go into EU market with tech to scale it, as each country promotes their own platforms as part of nations competition etc. Behold 2015 and Discord came out, which is almost exact copy of the Slovakian platform.
@@arnodobler1096all combined has lesser market cap than just apple.
@@jtb5729 Stock exchange is nothing more than a betting office! This can change from one day to the next. Apple is nothing without foreign hardware. US has become a service economy.
Market cap yes, but those countries are all market leaders in their respective sectors, without them apple wouldn't be able to make anything nor would most other companies@@jtb5729
Protecting sensitive information is a top priority.
A new company starts small and the US is a much bigger market than say starting a company in Italy were to expand you have to hire translators for French, German, Spanish speakers to even get out of your home country.
Start the company in the US though and all English speakers are already available and that's a lot of countries worldwide.
Germany has just 53 companies on the Forbes Global 2000 list the UK has 67 while Canada has 57.
Australia has 32 while Italy has just 28.
Bermuda a British overseas territory with a population of just 64,000 people has 6 companies the same as Belgium a country of over 11.5 million.
It's not just English speaking countries either since Hong Kong has 44 companies on the list to go with China's 302 companies.
It’s the US is numba 1 in world power.
I wonder if a big factor for Europe lagging was due to the economical devastation that was WW2. US got a lot of money helping rebuild those economies and snowballed its own thing while other countries were playing catch-up. Then the advantage compounded - you had more money to spend on high tech innovation, which gave you more money in turn and so on and so on...
If its this broad of a argument its too much of a copout
70 years had many things happening in between to make that general "cuz of ww2" Statement simply untenable unless it gets more in depth
This isn't true. Europe was on track with the US until 2008. Major European economies haven't really grown since 2008. Italy, Spain and the UK are basically the same as the were in 2008.
@@uchennanwogu2142the americans made so much money from loans in ww2.
Europe is full of people who want governments to give them benefits. The US attracts people who want to get rich on their own. That is the big difference
Money is not the only vector we should be looking at. I believe in general people are much happier in Europe than people in USA. From European point of view it feels like in USA the value of a human being is only measured by their wealth and that's pretty alarming.
Europe has a 15 million man Islamic plain clothes army on its soil. Just ask France about it...
Europe has largely abandoned pragmatism for ideology which always ends in the disaster of unintended consequences.
Thinks havent been good in the UK since i was born.
So you’re to blame then
@@kalamari3288love it lol
@@kalamari3288boomer mentality blaming the new generation. Isn't that something that happens in the US alot?
@@oscarglad5284hes joking
@@kernobil8162 it was a genuine question, not intended as mean or a rethorical question
Really interesting channel. I also like the discussion in the comments section. These people know what they are talking about.
Trust me, noone has any clue what they're talking about.
It's all just surface-level understanding of what's going on.
A few facts sprinkled in here and there.
Europe's "lagging behind" the US? How, exactly?
Better food. 3 times as long vacations, for everyone from hedge fund managers to store clerks. Great health care, for everybody. People live longer. They're happier. Women aren't forced to bear children, but if they do, there's a much better infrastructure to help them take care of them.
Economics as practiced by mainstream economists (and exemplified by this video) has divorced itself from reality. It's just an elaborate justification for the economic status quo.
> Why Is Europe Always Lagging Behind The US?
Lagging ? Lagging regarding murder rate ? Social differences ? Corruption ? Access to affordable healthcare ? Personal bankruptcies because of healthcare ? Access to affordable university education ? Public transit ? Walkable cities ? Work-private life balance ? It seems the USA is the one lagging behind Europe when it comes to the day to day issues people face and quality of life.
Why don't you make a video next comparing things like morbidity rates, child and mother mortality rates and so on ?
Adjust for population differences, and suddenly the US looks better.
Watch the video first.
@@philipjohn1338 You watch the video first. He mentions that the EU is ahead of the USA in many other factors, but he only focused on the economics, because guess what you numbnut, this is an economics channel.
Even if everything you list is true why is the European birth rate lower than the US birth rate and why is the European birth rate so far below replacement levels. European societies are slowly dying. If its so much better you'd expect human flourishing, ie more kids.
@@rathelmmc3194 Poorer nations tend to have vastly higher birth rates compared to wealthy/developed nations. The US birth rate has been in decline as much as the rest of the world and will only continue further.
Look up fertility-income paradox.
You compared America and Europes birth rates. Now compare both to other less developed nations. For more extreme contrast look at the birth rates of undeveloped African nations.
On one hand , Europeans shouldn't be triggered : it's literally an ECONOMICS channel .
On the other hand , Economics Explained knew EXACTLY what they were doing with that title
Declining population, most educated peoples of EU (went to school for free in EU) move to the usa for better pay. (scientist, doctors, engineers etc.)
One additional thing that was left out is conservation.
Europe has a lot of big and old companies, that are kept alive just to protect the jobs. The problem is, these companies are usually not value creators at all. But their existence (and often their subsidies) prevent novel startups to take their place. These would often have a much higher productivity.
A positive example you can see in the collapse of Nokia. It sparked so many new IT businesses, that the IT industry of Finland is now much bigger and more effective than it used to be with Nokia.
Europe has to allow for more economic evolution. Let the big, weak industrial companies go under, and let new startups regrow.
I do think, this is getting better, but it still is not as slow as it could. Especially with the European social security systems, the shortterm fallout wouldn't be as bad, and the longterm prosperity even higher.
I don't see much mention of consumerism. The US always grows because it's consumers always spend. End of story. Every other country in the world is jealous of how America benefits from consumer-led growth - just ask China. Europeans on the other hand are much quicker to cut back and live below their means. Just walk into any European person's apartment and then compare to that of a person of similar social status in the US. You got to spend money to make money. Most aligned with this point is the demographics challenge
yeah Europe isn't focused on profit before all else, we no longer look at just big number but the quality of life for people
I don't know, I lived in Finland and 2 other countries since. I remember the crushing taxes and government regulations, going completely bonkers after the EU and its bureaucrats meddling with every aspect of people's lives. It's a marvel anyone wants to start a business there. If they want a way out of the stagnation they're in, they need to ease on the reins.
I’ll take lagging behind if it means universal healthcare, workers rights, state owned good public transport and robust human rights🤠🤠
Great video! I think one factor that contributes to Europe lagging behind the US is the difference in risk-taking mentality. In the US, there's a stronger culture of embracing innovation and entrepreneurship, which fosters rapid growth and drives the economy. In Europe, there's often more emphasis on stability and caution, which can hinder the speed of progress.
What are your thoughts on this? Do you believe Europe can bridge the gap and catch up with the US in the future? 🚀
What do you mean by catching up ? Giving more money to the elite and making the middle/lower class poorer ?
Europe is likely the place where countries take the most care of their citizens and where people are the most equal, and we don’t get extreme violence and school shootings.
Im sure most Europeans are really satisfied with being the third world power if that means we keep being the first in quality of life.
If you look at the graph and the conclusion in this video about the industrial and agricultural output of the world now that is bigger than all of the existence of mankind together, you will see that thinking "growth" is a positive thing, is ludicrous. That is my main problem with economists. They have a very narrow view of what is "good". Even the word "goods" says it all. It is better to save the planet for future generations, whilst having a comfortable, insured life. Therefore I also resent the title of this video. Europe is not "lagging behind" it is at the forefront of what life should be.
13:08 Below 1400 hours can't be right. I work about 2100 hours/year and I'm from the Netherlands.
When I compare myself with my surroundings, I think most people are working about the same amount of hours as I do.
It’s unemployment, people who can’t find work/ people who work part time. So it’s probably the case that there’s a lot of people who can’t find as much work as Americans.
As an American, it doesn't feel like Europe has lagged behind. It feels like they are ahead in that they understand rapid growth isn't sustainable. The us economy grows but it grows at the expense of our personal lives, retirement safety nets, healthcare, infrastructure, liveability, and in many cases freedom.
And making the basics of living an expensive market
Which country in the 27 options are you talking about? There are parts in the European nation that are still 3rd world countries.
It's pretty interesting. Europe is kind of achieving the promise of more leisure time that Keynes posited.
I can only hope that the US will catch up to Europe in terms of working conditions and social programs
Social programs that keep us in massive debt?
@@briantbmoth6472USA debt: 120% GDP, EU debt: 90% GDP.
@@briantbmoth6472Nice question, enjoy UA-cam.
Loved this, thank you
The EU has little natural resources, multiple governments within it (most of which were/still are enemies), was destroyed in the biggest war ever fought, has an aging population and still manages to compete against the US, despite all these factors.
I think this speaks more to how the US is squandering their advantages than anything.
eu has 27 countries and still couldn't compete with usa
us existed for just 250 years and still managed to outcompete a continent that existed for far longer than us did
europ is a she tole
the EU is not "managing to compete" they have over 100+ million more people then the US but their economy is almost $10 trillion poorer than the US. so the US advantages aren't being "squandered".
@@daxtynminn3415 Of course, because the EU has very poor areas that joined in 2004 and later. But, with all due respect to Romania and Bulgaria on the EU side and Mississippi and Alabama on the US side, the strength of these areas is not very relevant. Take just western europe vs east + west coast and the picture is very different.
Not to mention the fact that PPP wise the difference is much smaller.
@@alaeus2310the state of California, 1 of 50 that had been an uninhabited backwater prior to being annexed has an economy greater than the UK, France, Russia, Spain and Italy and was poised to overtake Germany. I wouldn't call that squandering if I were you. Texas's economy is greater than Italy, Spain and Russia's. New York, a tiny cold and resourceless state had a bigger economy than the entirety of Russia for multiple years. Do some fact checking please. A non- tax haven of 340 million having the greatest median disposable income and highest GDP per Capita is nothing short of remarkable.
@@sulkel Oh, how convenient of you to forget how california got inhabited, which is gold. Or how Texas got rich (oil).
Without these resources, would they be the successful economies they are? Don't think so. The fact that Italy, a country that has no significant natural resources even has a GDP of around 2 trillion is nothing short of remarkable.
Without the natural resources it has, the US would still be a backwater.
And the reason it is squandering its advantages is simple: poverty and inequality. Your GDP numbers may look impressive, but they are unsustainable when almost 12% of your country is under the poverty line.
In comparison, the EU is under 10%. Mind you, including the ex-communist states.
We'll have this conversation again in 50 years, when the world won't be as oil dependent anymore and the severe lack of environmental regulations you all have will be unsustainable :)
When you have 20+ languages vs. When you need to speak ONE language to live and work in any part of the territory
Because Muricans are only speaking English? Actually most of the workers in the southern areas are only Spanish speaker , and other migrants like some Chinese in Chinatowns areas never learn to speak English, so what you are saying that most of the Europeans don't speak other languages than their native language?
@@theOrionsarms No. I'll explain. I was an accountant in Portugal with a master degree's in tax law. During the European debt crisis, that made the unemployment rate skyrocket, i was forced, with my wife, to run to Spain, where i had my brother-in-law and where i got a job as an office assistant. I was not capable of becoming an accountant over there because the tax law is different, not to mention that i spoke Spanish in a very primitive way (the good thing is that Portuguese resembles a lot like Spanish and so i was able to make myself understandable). Almost 2 years later my wife, a nurse, found a job in London UK, and we went to the UK. I started to work as an assistant in an office because, my English was not the best (not bad, but not the best, if you know what i mean) and the English tax laws are different from the Portuguese ones. We wished to stay for a long time so i started to re-learn English and doing some workshop and short-courses in English tax law. Then it came the Brexit. I became unemployed, the Pound fall in value and everything became unsustainable expensive. Once more we relocated to another country, Switzerland, where i am today. Once here i realized that not only the tax laws were different but also the accounting principles, and guess what, official language of the Canton, French. I started working in Infrastructures and my wife as as assistant in a Hospital. So, to resume, I was forced to learn 3 languages (outside my native language), although my diplomas were "accepted" in Spain and in the UK, in Switzerland they told me, straight to face, "That's sh*t". Different profound jurisdictions, associated with different official languages and rules and policies make almost impossible to search for opportunities in different parts of this continent.
Isn't English also the most popular second language in the EU?
@@tiagoquental1029 OK, I understand that because I am European too, and some of my family members also moved from one European county to another in the search for a better life, those problems are hard to solve, but language barrier is the smallest, because I don't speak Portuguese at all but both of us are understanding perfectly witchother.
@@theOrionsarms Try saying that to a recruiter here in Genève, they will will laugh at your face. Excluding United Nations, every office job application requires 1)native language French or German and 2) Permis C, i'm here since 2017 and i still didn't get it (maybe this year). By the way, if one day you desire to try, in Spain, if you don't speak Spanish, unless you are a graduate from a top university looking for a job in an international company, you'll never get a office job, never, i got it because of my brother-in-law. Say to them that you speak English and they'll throw you out of the window.